NZD/USD a partial round-turn on the RBNZ on hold between 0.7278 and 0.7198

Currently, NZD/USD is trading at 0.7258, up 0.42% on the day, having posted a daily high at 0.7278 and low at 0.7198.

After an initial dip to the 0.7198 level post the RBNZ staying on hold with no surprises, the bird picked up a bid again to 0.7270 on a relief that there were no immediate signals that the RBNZ were on the verge of cutting rates.

The outcome was as expected and comments such as "remaining accommodative for some time" due to the "uncertainties remaining" while they may need to "adjust policy accordingly" were again, all as expected. However, when they said, "outlook for domestic economic growth remains positive" the bird was able to catch a bid as risks mounted to the upside overall. 

RBNZ keeps OCR on hold at 1.75%

NZD/USD levels

NZD/USD managed a score through the 0.7250 mark on the data to aforementioned highs but again fell shy of the key level of 0.7280 upside target. To the downside, 0.7200 guards 0.7145 and a break back below 0.7080/90 are key near-term downside areas. On the wide, the 0.7375 YTD highs are a key target to the upside and to the downside, a break below 0.7080/00 opens 0.6970.