NZD/USD: mixed price action around on hold RBNZ jawboning the bird
|Currently, NZD/USD is trading at 0.7068, up 0.37% on the day, having posted a daily high at 0.7075 and low at 0.7016.
Statement by RBNZ's Wheeler following the OCR decision
NZD/USD moved back to pre-announcement levels after an initial offer in the Bird considering the language around the bird in the statement that accompanied the decision to keep rates on hold at 1.75%. The RBNZ said that further depreciation of the exchange is needed to achieve more balanced growth.Their policy will remain accommodative for a considerable period while the global monetary policy is expected to remain stimulatory but less so going forward. Their long-term inflation expectations remain around 2% while domestic growth outlook remains positive.
Elsewhere from the US session, there was uncertainty regarding the US healthcare bill, although the White House Press Secretary Sean Spicer announced that Trump believes health care bill will pass House of Representatives on Thursday, adding, "There are no plans to pull health care bill or delay the planned vote on Thursday."
Nevertheless, interest rates in the US 10-yr treasury yields dropped even lower from 2.42% to 2.37% to a fresh a three-week low. 2yr yields also fell from 1.26% to 1.24%. This pressured the greenback while it continued to struggle below the psychological 100 mark and ended in the index 0.2% lower, supporting the bird until 0.7071 highs ahead of the RBNZ where traders took profits ahead of the event.
NZD/USD levels
0.7098 remains the upside target guarding a break of the 0.71 handle, towards the double-bottom of potential resistance at 0.7130 on the 4hr chart in mid-Feb and late Fed business. 0.7245 comes as the late Jan/early Feb support and double top resistance Feb 16th and 23rd. To the downside, 0.7010/20 and 0.6950/60 levels are the key supporting areas guarding 0.6880 and March lows.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.