NZD/USD making fresh highs on the back of RBNZ presser, targets 21-D SMA

• NZD/USD heading higher to fresh highs during RBNZ presser.
• NZD/USD bid on RBNZ interest rate announcements/statement.
• Chinese data is next risk event.

NZD/USD has made fresh highs on the back of the RBNZ presser and previous statement/interest rate decision announcements. Currently, NZD/USD is trading at 0.6966, up 0.16% on the day, having posted a daily high at 0.6975 and low at 0.6952.

RBNZ keeps rates unchanged at 1.75%

NZD/USD is higher after the RBNZ left the Official Cash Rate (OCR) unchanged at 1.75 percent forecasting rates rising in Q2 2019 vs Q3 previously. The presser that followed has underpinned the notion that inflation target will be achieved while the RBNZ is comfortable with the level of the bird currently, trading at fair value. 

RBNZ's Spencer: We are happy to see the recent fall in NZD

For the session ahead, the Chinese Oct CPI annual inflation is scheduled and is expected to rise to 1.7%yr from 1.6%yr with food prices holding the pace down. Meanwhile, he greenback is at risk on the back of news that the Senate Republicans is planning to unveil a new version of the tax bill that tomorrow harbours significant differences from the House GOP's plan. According to sources, GOP leaders will have a conference at 11:30 (EST) on Thursday morning, at which they are going to share the details of their long-awaited tax overhaul legislation.

NZD/USD levels

The daily RSI is biased to the upside moving higher through the 40's and the 21-D SMA at 0.6999 is the key target ahead of 0.7054. To the downside, the 10-Day SMA was supporting earlier at 0.6898.