30 Apr 2015
NZD/USD dumps heavily on dovish RBNZ
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7616 with a high of 0.7694 and a low of 0.7606 at time of writing.
NZD/USD is dumping heavily on the back of the RBNZ that came in line with expectations and offered a dovish outlook and remarked at how unjustifiable the exchange rate is at these current levels.
The price action over the course of the last session and in to Asia has been of a better bid tone due up in to the 0.7740's on the bearishness around the US economy with a big miss in the Q1 GDP numbers earlier today that left the economy looking that it is at a stand still. However, that was soon justified in the FOMC statement that suggested the weakness was temporary and profit taking become the theme there after.
Meanwhile, the RBNZ have come out of the first quarter as now dovish having entered 2015 as sighted to be one of the banks who may be hiking rates this year. The Central Bank of New Zealand statement said that "It would be appropriate to lower the OCR if demand weakens, and wage and price-setting outcomes settle at levels lower than is consistent with the inflation target." This has confirmed what was a delayed triple top and the downside is left wide open as a possible correction from here on with April lows at the 0.74 handle in sight on a break of the ascending support line below the 0.76 handle.
NZD/USD is dumping heavily on the back of the RBNZ that came in line with expectations and offered a dovish outlook and remarked at how unjustifiable the exchange rate is at these current levels.
The price action over the course of the last session and in to Asia has been of a better bid tone due up in to the 0.7740's on the bearishness around the US economy with a big miss in the Q1 GDP numbers earlier today that left the economy looking that it is at a stand still. However, that was soon justified in the FOMC statement that suggested the weakness was temporary and profit taking become the theme there after.
Meanwhile, the RBNZ have come out of the first quarter as now dovish having entered 2015 as sighted to be one of the banks who may be hiking rates this year. The Central Bank of New Zealand statement said that "It would be appropriate to lower the OCR if demand weakens, and wage and price-setting outcomes settle at levels lower than is consistent with the inflation target." This has confirmed what was a delayed triple top and the downside is left wide open as a possible correction from here on with April lows at the 0.74 handle in sight on a break of the ascending support line below the 0.76 handle.