Intraday analysis: NZD/USD falls ahead of RBNZ rate decision

NEW YORK (Forex News Now) – The New Zealand dollar fell against its U.S. counterpart on Wednesday, retreating from a 7-week high, ahead of a key interest rate decision by the Reserve Bank of New Zealand.

In European morning online FX trading, NZD/USD hit 0.7313, down 0.4 percent on the day, after pulling back from Tuesday’s 7-week high of 0.7394.

The RBNZ governor, Alan Bollard, was expected to leave the central bank’s benchmark interest rate, its official cash rate, unchanged at 3 percent, in the wake of the nation’s worst earthquake in eight decades and amid slowing consumer spending.

According to intraday analysis, NZD/USD was likely to touch support around Tuesday’s low, 0.7268, and encounter immediate resistance around 0.7394.

Also Wednesday, the United States was set to publish a raft of important economic on manufacturing in New York state, import prices, industrial production, capacity utilization and crude oil inventories.

Elsewhere, the kiwi also slid versus sterling: GBP/NZD traded at 2.2125, up 0.29 percent.