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NZD/USD struggles to hold above 0.6700 ahead of Fed and RBNZ

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 (Córdoba) - NZD/USD has resumed the decline on Wednesday with the kiwi as one of the worst performers ahead of the Fed and the RBNZ policy decisions.

    NZD/USD lost nearly 80 pips throughout the day and is challenging the 0.6700 support area as investors await central banks’ verdicts. While the Fed is expected to remain on hold, analysts are split on whether the RBNZ will ease its policy further. The RBNZ has already cut its key interest rate 3 times since June, from 3.5% to current 2.75% to combat the effects on the real economy of the slump in key export prices, and to weaken the NZD.

    At time of writing, NZD/USD is trading at 0.6707, down 0.81% on the day, and having scored a low of 0.6702 so far.

    NZD/USD technical levels

    As for technical levels, NZD/USD could find immediate supports at 0.6698 (Oct 21 low) and 0.6600 (100-day SMA) and 0.6565 (50% Fibo retracement of 0.6236-0.6898). On the other hand, resistances line up at 0.6775 (Oct 28 high), 0.6813 (Oct 27 high) and then 0.6865 (Oct 23 high).
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