NZD/USD attracted by 0.75 magnetic value

FXStreet (Bali) - NZD/USD is trading lower, with last week's strong rebound off 0.7440 unable to see price acceptance above the 0.76, where macro offers stepped in to absorb the buying for a return towards 0.75, current level and a magnet for prices.

Today's Kiwi performance will be very much dependent on AUD response to the RBA monetary policy decision. According to Jim Langlands, Founder at FXCharts: "If the RBA do cut, then the nearby support will get taken out as the Kiwi heads towards the rising trend support at 0.7460 and then to the Fibo support at 0.7445 (38.2% of 0.7175/0.7610) beneath which, the next target will be the 13 Feb low at 0.7410 and 0.74."

Should the RBA decide to hold rates, the probably AUD reaction is a spike, and whether is sustained at higher levels or not, that would depend on the statement rhetoric. In any case, the Kiwi should see a push north, with Jim expecting "a spike back towards 0.7575 and we could even see another run towards 0.7600 and to last week 0.7613 high", the analyst adds.