NZD/USD plummets to over one-week low, bears eye 0.6100 mark after RBNZ

NZD/USD meets with aggressive supply after the RBNZ decides to maintain the status quo.
The sharp intraday downfall seems rather unaffected by the lack of any USD buying interest.
Traders now look to RBNZ Governor Adrian Orr’s presser for some meaningful impetus.

Haresh Menghani FXStreet

The NZD/USD pair attracts heavy selling after the Reserve Bank of New Zealand (RBNZ) announced its policy decision and dives to over a one-week low in the last hour. Spot prices currently trade around the 0.6120 region and seem vulnerable to prolonging the recent retracement slide from over a one-month peak touched last week.

As was anticipated, the RBNZ decided to keep the Official Cash Rate (OCR) steady at 5.50% for the fifth time in a row at the end of the February policy meeting. This seems to have disappointed some investors anticipating further tightening in the wake of still-sticky inflation and turns out to be a key factor exerting downward pressure on the New Zealand Dollar (NZD). The focus now shifts to RBNZ Governor Adrian Orr’s press conference at 02:00 GMT, which should infuse some volatility and produce short-term trading opportunities around the NZD/USD pair.

In the meantime, bulls seem rather unaffected by subdued US Dollar (USD) price action, which continues with its struggle to gain any meaningful traction amid the looming US government shutdown. Apart from this, Tuesday's disappointing release of the US Durable Goods Orders and a softer tone surrounding the US Treasury bond yields keep the USD bulls on the defensive, albeit does little to lend any support to the NZD/USD pair. This, in turn, suggests that the path of least resistance for spot prices is to the downside and validates the near-term negative outlook.

NZD/USD

Overview
Today last price	0.6172
Today Daily Change	0.0004
Today Daily Change %	0.06
Today daily open	0.6168

Trends
Daily SMA20	0.6128
Daily SMA50	0.6178
Daily SMA100	0.6092
Daily SMA200	0.6076

Levels
Previous Daily High	0.6179
Previous Daily Low	0.6151
Previous Weekly High	0.6219
Previous Weekly Low	0.6122
Previous Monthly High	0.6339
Previous Monthly Low	0.6061
Daily Fibonacci 38.2%	0.6162
Daily Fibonacci 61.8%	0.6168
Daily Pivot Point S1	0.6153
Daily Pivot Point S2	0.6139
Daily Pivot Point S3	0.6126
Daily Pivot Point R1	0.6181
Daily Pivot Point R2	0.6194
Daily Pivot Point R3	0.6208

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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