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NZD/USD mixed post RBNZ on hold and jawboning

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - NZD/USD was mixed after the RBNZ unchanged 2.75% further easing seem likely and a rate cut depends on emerging data flow. Initially the bird jumped on the release as a cut was priced in, but then supply took over again while the RBNZ also jawboned the bird by suggesting the sustained Kiwi dollar rise would require a lower rate path.

    Prior to the announcements, the FOMC came in unexpectedly hawkish and the bird was offered almost a cent lower starting out on the 0.67 handle with bearish pressures below the cluster of turning MA's on the hourly chart.

    The price was in a drift from yesterday's business at the 200 SMA on the same times frames at 0.6772 currently and has been unable to recover ever since, especially with the possibility of a Fed hike before the year is out.

    Full text October FOMC statement

    NZD/USD levels

    Technically, the price is now trading below the 20 DMA ahead of key supported at 0.6620 ahead of further support at circa 0.6580. The broader daily bearish trend is pressured below the 200 DMA at 0.7017 targeting 0.6500 and the bottom of recent downtrend.
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