NZD/USD has been under pressure today after the Chinese import number missed expectations, but has recovered somewhat since the NY open, driven by overall USD weakness. While techs remain bearish, short-term sentiment is mixed ahead of the RBNZ meeting. The daily RSI suggests the NZD/USD is in oversold territory, but bulls will need a clear break above 0.7730 for the short-term trend to reverse.
While I have a negative outlook on the Kiwi Dollar in the medium- and long-term, I think we will see a bounce ahead of the RBNZ meeting on Wednesday evening. I expect a bounce towards the 0.77 level, which was the Sunday open, and possibly 0.7750 should the pair be able to sustain momentum above the big figure.
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