The Kiwi pair has saw some bids around 0.6300 and has moved above the round-level resistance of 0.6300 in the Asian session. On a broader note, the asset is displaying topsy-turvy moves in a range of 0.6285-0.6327 since Friday.
Traders have shifted their attention on the speech from Federal Reserve chair Jerome Powell, which is due on Wednesday. The speech will provide some insights into the likely monetary policy action by the Fed in July.
Considering the soaring price pressures and the upbeat growth prospects, the Fed is expected to dictate one more 75 basis point interest rate hike. Efficient employment creation capacity, strong growth outlook, and of course the inflationary pressures are sufficient to support the verdict.
Looking forward, the Reserve Bank of New Zealand (RBNZ) will be the first Western central bank, which will shift its interest rates to a neutral state. Officially, the Official Cash Rate (OCR) stands at 2% after a 50-bps rate hike announcement by RBNZ Governor Adrian Orr on May 25. Without a doubt, the RBNZ will face the consequences of elevating its interest rates vigorously as a quick enrolment of policy tightening measures will reduce the overall demand.
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