Ella 
In early Asian trading on Tuesday, NZD/USD remained above the psychological mark of 0.6100. NZD/USD’s gains are supported by weakness in the U.S. dollar. The highlight of the week will be the Reserve Bank of New Zealand’s monetary policy meeting on Wednesday. NZD/USD is currently trading around 0.6103, with an intraday increase of 0.07%.
The Reserve Bank of New Zealand is expected to keep the overnight cash rate at 5.50% for the fourth consecutive time at its meeting on Wednesday, and there is speculation that interest rates will be cut in the future, but the specific time frame remains uncertain. At the same time, China’s new stimulus plan will boost the real estate industry, which provides some support for the New Zealand dollar acting on behalf of China.
In the U.S. dollar, U.S. housing data released on Monday showed that rising mortgage rates dented demand in October. The Census Bureau and the Department of Housing and Urban Development reported that new home sales fell 5.6% monthly in October to 679,000 units, below expectations of 725,000 units. Meanwhile, the Dallas Fed manufacturing index was -19.9 in November, compared with the previous reading of -19.2. Still, weak US economic data weighed on the greenback and boosted NZD/USD.
Traders will keep a close eye on Tuesday’s U.S. data, including the U.S. home price index, the S&P/CS home price index, the Conference Board consumer confidence index and the Richmond Fed manufacturing index. Focus will turn to Wednesday’s RBNZ interest rate decision. These events can trigger market volatility and provide clear direction for NZD/USD.
