NZD/USD pressures mount after FOMC before RBNZ

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - NZD/USD is one to watch today, with the RBNZ rapidly approaching to see whether bears can continue to make their mark on the board after a more hawkish than expected statement from the FOMC today.

    Full text October FOMC statement

    The Fed, as expected, has left rates on hold. The vote was 9-1 with Lacker who dissented yet again, but the statement dropped the part where Global developments were hindering growth and also said that they still see inflation rising towards 2% in the medium term. In respect of timings for a December rate hike, the committee need to see maximum employment and want more confidence in inflation.

    In respect of the RBNZ. Analysts at The Bank of Tokyo-Mitsubishi UFJ, Ltd noted that easing expectations build ahead of RBNZ meeting.

    NZD/USD levels

    Technically, the price is now testing the commitment of the bulls at the 20 DMA ahead of key support circa 0.6580. The broader daily bearish trend is pressured and intact below the 200 DMA at 0.7017 while the bottom of the recent range is 0.6500.
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