Global macro overview for 02/03/2017:
In his recent statement, Reserve Bank of New Zealand (RBNZ) Governor Wheeler stated that the risks around future Official Cash Rate (OCR) movements are equally weighted reflecting balanced risks around inflation. This means, that the possibility of RBNZ hiking the interest rate or cutting the interest rate is equal and depend mainly on the RBNZ economic projection targets. Moreover, the RBNZ is currently biased towards the negative sentiment, mostly due to several major sources of uncertainty surrounding Europe, the US, and China. In Wheeler opinion, the biggest risk is President Trump's "America First" policy which could lead to protectionism and might highly influence the global economy in a negative way. In conclusion, RBZA is keeping an eye on the US political and economic development and might cut or hike the interest rate depending on the future projections.
Let's now take a look at the NZD/USD technical picture at the daily time frame. The price is trading just below the 50%Fibo at the level of 0.7118, but those are not the oversold market conditions yet. The next support is seen at the level of 0.7041 and if the technical support at the level of 0.7098 is clearly violated, then this would be the next target for the bears.
