NZD/USD Forecast – New Zealand Dollar Remains On Top Vs Dollar
- – The New Zealand Dollar moved higher against the US Dollar, and currently well above the 0.7010 resistance.
- – There is a monster bullish trend line with support at 0.7020 formed on the hourly chart of NZD/USD.
- – The RBNZ Interest Rate Decision (March 23, 2017) was announced by the Reserve Bank of New Zealand in which the central bank announced no change in rate from 1.75%.
RBNZ Interest Rate Decision
Today during the Asian session, the RBNZ Interest Rate Decision (March 23, 2017) was announced by the Reserve Bank of New Zealand. The market was not expecting any reduction in rates from 1.75%, and the result was the same.
The outcome was positive, as helped the New Zealand Dollar to remain above the 0.7000 handle against the US Dollar. A few key points from the official release – “Global headline inflation has increased, partly due to a rise in commodity prices, although oil prices have fallen more recently”, “Quarterly GDP was weaker than expected in the December quarter, but some of this is considered to be due to temporary factors” and “Monetary policy will remain accommodative for a considerable period.”
Overall, the New Zealand Dollar remains supported for more gains above the 0.7050 level in the near term with a chance of a move towards 0.7100.
NZD/USD Technical Analysis
The New Zealand Dollar managed to stay in the bullish trend with a move above 0.7010 against the US Dollar. The NZD/USD pair was successful in breaking the 100 hourly simple moving average at 0.7030, resulting in a positive bias.
The pair is trading above the 0.7010 support and the 100 hourly simple moving average. Moreover, there is a monster bullish trend line with support at 0.7020 formed on the hourly chart. So, we can say that the pair is well above the 0.7010-0.7020 support area, and looking to extend gains.
It is already above the 23.6% Fib retracement level of the last drop from the 0.7072 high to 0.7025 low. So, there is a chance of it moving higher towards a bearish trend line at 0.7060 on the same chart. A break above it could ignite a move towards the 0.7083 level. It represents the 1.236 extension of the last drop from the 0.7072 high to 0.7025 low.
