NZD/USD is currently in a volatile corrective structure ahead of the Official Cash Rate and RBNZ Rate Statement. As the Cash Rate is the short-term interest rate which is a crucial factor in currency valuation it is expected to have a high impact on the market today. NZD Cash Rate today is expected to be unchanged at 1.75% and any positive or negative change in the report will signal a further move in this pair in the future. The RBNZ Cash Rate Statement is also expected to have a high impact today as it is one of the primary tools RBNZ uses to communicate to the investors about the monetary policies and the interest rates. It also discusses the economic outlook and offers clues on the outcome of future decisions as well, which has a higher possibility of injecting a good amount of volatility in the market today during the event. On the USD side today, Unemployment Claims report which is expected to rise to 241k from previous value of 237k and HPI report is expected to show a decrease to 0.4% from 0.6% previously. Along with the economic reports, FOMC Member Powell will speak about the future interest rates decisions and monetary policies. To sum up, a good amount of high impact economic event is going to take place today on the both currencies of the pair and any positive or negative reports on each side is expected to bring a good amount of volatility in the pair and breakout of the current corrective range.
Now let us look at the technical view, the price is currently residing inside a corrective range of 0.72 to 0.73 area. As of the high impact economic events is going to take place soon, a good amount of volatility is expected to hit the market today. As of the recent trend in place market is in bullish bias and expected to reach 0.7370 resistance level soon but as the price is stuck inside a range and ahead of a high impact event a daily close will signal a further move in this pair.
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