NZD/USD attempting break above 61.8% Fibo after inflation data

Upbeat New Zealand inflation expectations figure is strengthening the bid tone around NZD, courtesy of which NZD/USD is attempting a break above 0.7182 (61.8% of 0.7325-0.6951).

Eyes RBA rate decision

The immediate trigger for the pair is the RBA rate decision, which could result in a sharp moves in the AUD/NZD cross. Moreover, RBA decision is important in a sense that a rate cut would increase pressure on the RBNZ to cut rates on Aug 11.

Later in the day, Fonterra GlobalDairyTrade (GDT) price auction could influence the spot. A drop in milk prices would increase RBNZ easing bets.

NZD/USD Technical Levels

At the time of writing, the pair was trading around 0.7180. Acceptance above 0.7182 (61.8% of 0.7325-0.6951) would expose 0.7230 (previous day’s high) – 0.7237 (76.4% of 0.7325-0.6851). On the other hand, a breakdown of support at 0.7171 (23.6% of 0.6675-0.7325) would open doors for a slide to 0.7138 (50% of 0.7325-0.6951) and 0.71 handle.