The Kiwi ended its session against the US Dollar just above 0.65 cents at 0.6508 (0.6485 yesterday) heading into today’s RBNZ policy and rate announcement. The Reserve Bank of New Zealand is widely expected to keep interest rates unchanged. Governor Graeme Orr is expected to have a more upbeat outlook on the economy after New Zealand ended its lockdown almost two weeks ago. The NZD TWI (New Zealand Dollar Trade Weighted Index) currently sits at the high end of its recent range and there is scope to talk the currency down.
NZD/USD has immediate resistance at 0.6530 (overnight high 0.65332) followed by 0.6560. Immediate support can be found at 0.6480 and 00.6450. The latest Commitment of Traders report (week ended June 16) saw speculative short Kiwi bets cut to -NZD 1,932 from -NZD 11,246. Look for consolidation in a likely 0.6430-0.653 range. Prefer to sell rallies.