NZD/USD: subdued awaiting nonfarm payrolls

NZD/USD is an early offer in early Asia, ticking lower from 0.7180 by 10 pips as we await what could be a quiet session ahead of the nonfarm payrolls event in the US shift.

While we have nothing from the NZ economy today, we do have the RBA Monetary Policy Statement an hour and a half into the Tokyo session and it will be interesting to see what is said about the level of the Aussie dollar and the RBA's guidance in respect of its recent interest rate cut to all time lows.  

Overnight the action was around the BoE surprising markets with more QE than had been expected while cutting interest rates by 25bps as projected by investors. 

Break down of BoE offered by analyst at Westpac:

• Bank Rate cut 25bps to 0.25%
• Further GBP60bn of Gilt purchasing under their Asset Purchasing Programme
• Additional GBP10bn of corporate bond purchases
• Term Funding Scheme (TFS)  to ensure transition of Bank Rate cuts to households and corporates (potential of GBP100bn)
• A total additional package amounting to GBP170bn
• MPC members expect further rate cut

However, the bird remained within a 50 pip range and now awaits the nonfarm payrolls event as next major catlyst. 

NZD/USD levels

Spot is presently trading at 0.7173, and next resistance can be seen at 0.7176 (Hourly 20 EMA), 0.7178 (Daily High), 0.7183 (Daily Classic PP), 0.7191 (Hourly 100 SMA) and 0.7203 (Yesterday's High). Next support to the downside can be found at 0.7173 (Daily Open), 0.7169 (Daily Low), 0.7147 (Yesterday's Low), 0.7133 (Weekly Classic PP) and 0.7126 (Hourly 200 SMA). Regarding candlestick formations, we can see Dark Cloud Cover formation on the 4-hour .