- – The New Zealand Dollar is under a lot of pressure and moved below 0.7240 against the US Dollar.
- – There is a major bearish trend line forming with resistance at 0.7210 on the hourly chart of the NZDUSD pair.
- – Today in New Zealand, the RBNZ Interest Rate Decision (Sep 2017) was announced by the Reserve Bank of New Zealand.
- – The outcome was in line with the forecast of 1.75%, as there was no change in the interest rates.
RBNZ Interest Rate Decision
Today in New Zealand, the RBNZ Interest Rate Decision (Sep 2017) was announced by the Reserve Bank of New Zealand. The market was not expecting any change in the interest rates from 1.75%.
The actual result was in line with the forecast of 1.75%, as there was no change in the interest rates. The rate statement mentioned that the GDP in the second quarter of 2017 was in line with expectations, and the annual CPI remains in the target range despite of a minor decline in Q2 2017. The report added that:
House price inflation continues to moderate due to loan-to-value ratio restrictions, affordability constraints, and a tightening in credit conditions. The trade-weighted exchange rate has eased slightly since the August Statement. A lower New Zealand dollar would help to increase tradables inflation and deliver more balanced growth.
Overall, the NZD/USD pair might remain under bearish pressure and could even break the 0.7160 support in the near term.
NZD/USD Technical Analysis
The New Zealand Dollar started a major downside move from the 0.7340-40 levels against the US Dollar. The NZD/USD pair traded below a couple of important support levels such as 0.7300 and 0.7250.
The pair is now well below the 0.7240 support and the 100 hourly simple moving average. It traded as low as 0.7167 and later started correcting higher. It traded above the 23.6% Fib retracement level of the last decline from the 0.7343 high to 0.7167 low.
However, the upside move was protected by a major bearish trend line with current resistance at 0.7210 on the hourly chart. Moreover, the 38.2% Fib retracement level of the last decline from the 0.7343 high to 0.7167 low also acted as a hurdle for buyers.
Overall, the pair remains in a downtrend and it might soon attempt a break of the recent low at 0.7167 for a move towards 0.7140.Tags: New Zealand Dollar, NZD/USD Technical Analysis, RBNZ Interest Rate Decision, US Dollar