NZD/USD dops like a stone on RBNZ surprise cut

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    NZD/USD is currently dropping like a stone, through the 20 dma at 0.6671, on the RBNZ cutting interest rates and surprising markets with the move.

    NZD/USD dropped from its perch on the 0.68 handle and has made low of 0.6649 so far on the 25bp cut form the Central Bank in a pre-emptive move while the outlook for global growth has deteriorated since Dec meeting. The OCR now stands at 2.25%. The RBNZ added in the move within the statement that further easing may be expected and further NZD depreciation is appropriate.

    NZD/USD levels

    Technically, NZD/USD has burst below the 20 dma at 0.6670 and is en-route to test the 200 and 10 converging at 0.6633 with a low so far of 0.6649 so long as the offers can lkeep the bird under pressure below the 4hr 50 sma at 0.6699 and the 100 sma on the same time frame at 0.6675.
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