NZDUSD Tests Key Support Post Fall on Dovish RBNZ

9 February, 2017

Wednesday 8th Feb, at 22:00 GMT, the Reserve Bank of New Zealand (RBNZ) announced the Interest rates remain unchanged at a record low of 1.75%, in line with expectations.

The RBNZ adopted a dovish outlook, forecasting the rates will remain at this level until June 2019, tempered by global uncertainty. The statement for the year implies no further rate cuts and rate hikes in the following two years or longer.

The RBNZ’s dovish statement follows the Reserve Bank of Australia (RBA) announcement which was made two days ago.

NZD/USD has remained bullish since the beginning of this year, trading along the downside uptrend line support. However, since early February, the bullish momentum has waned.

On the 4 hourly chart, the level at 0.7300 was broken by a long bearish candle on 8th Feb. The level has turned into the near term major resistance.
After the RBNZ announcement, NZD/USD plunged to a two-week low of 0.7190. It is currently testing the key support line at 0.7200.

On the 4 hourly chart, the Stochastic Oscillator is below 20, suggesting a rebound.

However, the price is trading below both the long term and the short term moving averages, indicating upside pressure is heavy.

The resistance level is at 0.7225, followed by 0.7245 and 0.7270.
The support line is at 0.7200, followed by 0.7170 and 0.7150.

Source   Presented by FxPro
New Zealand Dollar nosedives7 Aug, 2019  

The New Zealand Dollar weakened against every single G10 currency this morning after the Reserve Bank of New Zealand (RBNZ)...

NZ Inflation Weaker Than Expected17 Apr, 2019  

The quarterly inflation report from New Zealand saw consumer prices rising at a slower pace than forecast. Data from Statistics New Zealand showed...

RBNZ Interest Rate Decision12 Feb, 2019  

We could see some volatility in NZD pairs later in the Asian session around what is probably the most important and market-moving event of the month...

New Zealand Dollar severely hit10 Aug, 2018  

Investors in Asia largely brushed off the ongoing trade fight between China and the U.S., with Shanghai's blue-chip stocks climbing 2.4%, a move...

NZD falls on RBNZ dovish stance9 Aug, 2018  

It's been an exciting morning for the Reserve Bank of New Zealand as they announced that they see rates being held at 1.75% until 2020 in the current market...

NZD slips on trade data25 Jul, 2018  

The New Zealand economy looks to be taking a hit, with trade balance data coming in much weaker than expected at -113M (200M exp), showcasing that...

NZD/USD: No signs of a near breakout19 Jul, 2018  

NZD/USD has been stuck in a sideways range of 0.6690-0.6860 in July, and shows no sign of a near term breakout, according to Imre Speizer, Head...

NZD sinks further as the USD shines3 Jul, 2018  

The New Zealand dollar has taken a dive today as pressure continues to be piled on commodity currencies and the NZD especially. With some very poor...

NZD in focus ahead of RBNZ rate decision28 Jun, 2018  

There is a lot of heat on the upcoming interest rate decision for New Zealand; not because of the fact that markets are expecting it won't change, but more...