NZD/USD drops as RBNZ's official talks about negative interest rate

NZD/USD takes a hit as RBNZ's official says the central bank is working on negative rates.
The dovish comments overshadow upbeat New Zealand Activity Outlook data.

The selling interest around the New Zealand dollar strengthened on Thursday, pushing NZD/USD down from 0.6577 to 0.6557 on dovish comments by Reserve Bank of New Zealand's (RBNZ) official.

"Inflation is likely to remain well below the target for three years," RBNZ's Hawkesby said and added that the central bank is actively working on negative interest rates and funding for a lending program.

The policymaker said its better to do too much too soon rather than fall behind the curve.

Hawkesby's comments about negative rates drew offers for the NZD and overshadowed a better-than-expected New Zealand data released at 00:00 GMT.

New Zealand's Business Confidence ticked higher to -14.5 in October versus expectations for a decline to -32.6 from September's 28.5. Meanwhile, October's Activity Outlook rose to 3.6% from September's -5.4% reading and expectations for -14.6%.

Technical levels

NZD/USD

Overview
Today last price	0.6557
Today Daily Change	-0.0020
Today Daily Change %	-0.27
Today daily open	0.6576

Trends
Daily SMA20	0.6638
Daily SMA50	0.6633
Daily SMA100	0.6549
Daily SMA200	0.639

Levels
Previous Daily High	0.6601
Previous Daily Low	0.657
Previous Weekly High	0.6658
Previous Weekly Low	0.6539
Previous Monthly High	0.6799
Previous Monthly Low	0.6511
Daily Fibonacci 38.2%	0.6582
Daily Fibonacci 61.8%	0.6589
Daily Pivot Point S1	0.6564
Daily Pivot Point S2	0.6552
Daily Pivot Point S3	0.6534
Daily Pivot Point R1	0.6595
Daily Pivot Point R2	0.6613
Daily Pivot Point R3	0.6625

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