NZD/USD down -0.17% on the day at 0.7302, with eyes on a break of 0.7350

Currently, NZD/USD is trading at 0.7302, down -0.17% on the day, having posted a daily high at 0.7329 and low at 0.7285.

NZD/USD has been in consolidation around the 0.73 handle, as seen by highs and lows of today's trade so far. This is a firm resistance area meeting the trend-line from early September business and early November highs. However, the playing field is in perfect condition for the kiwi bulls ahead of this week's RBNZ with much of the same fundamentals stacking up for the Aussie are indeed supportive of the Kiwi, although the economic conditions in NZ are somewhat arguably more robust than they are in Australia. 

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 RBNZ to stay on hold

We expect the RBNZ to retain the bottom line of its November statement: “Current policy settings will see growth strong enough to have inflation settle near the middle of the target range”. The RBNZ will probably also repeat its reminder that further OCR cuts are not entirely off the table: “numerous uncertainties remain, particularly in respect of the international outlook, and policy may need to adjust accordingly”.

NZD/USD levels

0.7350 is the key resistance to get through, that is well possible as  Momentum remains positive, targeting the 0.7400 area next (Nov high). "The month ahead could see NZD/USD extending beyond 0.7500 (Sep high) if the US dollar continues to register disappointment in the Trump Administration’s policies."