NZD / USD Tumbler on More Dovish RBNZ
- New Zealand Dollar tumbles as RBNZ tip, rate cut bias
- This echo similar cautious comment from the Fed, ECB
- NZD / USD may have more room to fall into technical signs
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The New Zealand Dollar fell as much as 1[ads1].45%, and set itself up for the worst performance in a single day since February 6 th on a more poor RBNZ rate decision – although the shift in emotions was expected . The holding rate unchanged at 1.75% was the expected result, but the surprising part was that the central bank's transition to a vantage point that favors a speed cut over a trip.
The Reserve Bank of New Zealand stated that the risk of the prospect has fallen to the disadvantage of similar downgrades from the major central bank's counterparts. Recently, the previous week's deaf Fed was mainly taking trips (2) off the table for this year. The concern of RBNZ was straightforward: weaker global growth, reduced domestic momentum and low business sentiment.
RBNZ's cautious transition was not taken very well in stocks. Nikkei 225 directed down the announcement, down about 0.75% at the time of this writing. Meanwhile, anti-risk Japanese Yen and to some extent US Dollar were both rallied. At the same time, pro risk changed Australian Dollar gently cautiously.
In the future, the pro-risk currency will closely monitor market optimism that can be dictated by key US economic news feeds. For the rest of the week, the United States offers GDP and Core PCE data that threaten to fall out of economists' expectations. This has been the trend as late, with disappointing consumer confidence over the last 24 hours as the last example. 0
NZD / USD 15-minute card response to RBNZ
Chart created in TradingView
NZD / USD Technical Analysis
NZD / USD Deleted near-rising support line from the beginning of this month after not removing a number of resistance beyond 0.6918. Looking at the daily chart below, you can see a triple top formation. If the pair is able to fall below the rising trend line from October, there may be more room for losses that come forward. You can follow me on Twitter for the latest updates on NZD here at @ddubrovskyFX .
NZD / USD Daily Chart
Chart Created in TradingView
New Zealand Dollar Trading Resources
— Posted by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com
To contact Daniel, use the comments below or @ddubrovskyFX on Twitter