Rate decision at 9 PM ET tomorrow
The Reserve Bank of New Zealand is expected to raise rates by 25 basis points at their meeting tomorrow (to 0.50% from 0.25%). If they do indeed hike, they would be leading the way as far as major central banks on a hike path.
Perhaps in anticipation, the NZDUSD has moved higher in trading today. In the process, the pair moved above its 200 hour moving average currently at 0.69688. However the US session has seen the price waffle above and below that moving average level as traders settle in before the decision (there is also the anxiety from the stock market and China slowing hurting growth).
Also near that key moving average barometer is its 38.2% retracement of the move down from the September high to the September low. That level comes in at 0.69763. A swing area between 0.69803 and 0.69928 also looms above (swing lows going back to September 21 through September 28).
Should the price move lower, the 100 hour moving average at 0.69173 will be the barometer for traders looking for a potential dip to buy, or a break below to increase the bearish bias.
The decision will take place at 9 PM ET Tuesday/01008 GMT Wednesday.
