NZD/USD is better offered in Asia, with a concentrate on the greenback.
For the Kiwis, the RBNZ will be the primary event this week.
As traders prepare for the Asian session, the NZD/USD is presently trading at 0.6984, down 0.20 percent on the day.
The New Zealand dollar traded between a low of 0.6948 and a high of 0.7008 against the US dollar on Monday, as fears of a pandemic prompted investors to seek safe-haven assets.
Despite a scarcity of data, the dollar is expected to stay popular. In terms of the kiwi, all eyes will be on the Reserve Bank of New Zealand in the next days to see if it can match market expectations for rate hikes.
“The kiwi began the week by falling, but it quickly reversed course as the day progressed. Due to a paucity of data, markets were mostly quiet to begin the week. This week, a lot of eyes will be on rates markets to see if the recent surge in US Treasuries can be unwound further,” according to ANZ Bank strategists.
The RBNZ meeting will be a crucial factor for the Kiwi this week.
“Given how far market pricing has already drifted, the central bank may find it difficult to ‘out-hawk’ the market.” As a result, unless there is a significant shift in the rhetoric, it may be difficult for the RBNZ decision to trigger a major move in the Kiwi,” according to ANZ Bank analysts./n
