NZD/USD gives little reaction to unchanged New Zealand inflation expectations
- Kiwi gave little reaction to inflation expectations amid trade news.
- RBNZ grabs the spotlight with GDT price index being an intermediate data to follow.
NZD/USD seesaws around 0.6610 after the quarterly release of New Zealand inflation expectations remain unchanged during early Tuesday.
The Reserve Bank of New Zealand’s (RBNZ) survey concerning second quarter 2019 inflation expectations showed the price pressure to remain unaffected at 2.0%.
The quote remains tight lipped off-late as investors reacted differently to early signals regarding the US-China tariff war.
A monetary policy meeting by the Reserve Bank of Australia (RBA) could gain the immediate attention of the Kiwi traders as Australia is the largest customer of New Zealand. Also, it is expected that RBA’s rate-cut could be followed by the RBNZ’s rate change.
It should also be noted that fortnightly release of global dairy trade prices for New Zealand could offer intermediate moves to the pair ahead of tomorrow’s RBNZ meeting. The GDT price index grew +0.5% in its previous release and is expected to register -1.1% contraction during this time.
Technical Analysis
The area comprising lows since January around 0.6590/80 can restrict immediate downside with 0.6570 and 0.6510 being follow-on numbers to watch during the additional south-run.
Meanwhile, an upside clearance of a descending trend-line since late-March near 0.6650 can propel prices towards 0.6685, 0.6700 and 200-day simple moving average (SMA) near 0.6725.