- RBNZ is forecasting rates rising in Q2 2019 vs Q3 previously.
- RBNZ leaving the Official Cash Rate (OCR) unchanged at 1.75 percent.
- NZD/USD spiked on the statement.
NZD/USD spiked 30 pips on the back of the RBNZ on hold, leaving the Official Cash Rate (OCR) unchanged at 1.75 percent forecasting rates rising in Q2 2019 vs Q3 previously, hence the bid. Currently, NZD/USD is trading at 0.6947, up 0.60% on the day, having posted a daily high at 0.6965 and low at 0.6897.
The NZD has been drifting in a correction of the 0.6818 recent lows and has just exceeded previous recovery highs on the headlines.
Headlines of the statement as follows:
Meanwhile, the bird can also find support due to a softer dollar that has been at the mercy of ebbs and flows in risk sentiment this week as the markets are watching for developments in the US tax reform and President Trump’s trip in Asia. US yields have been a driver in the price today, that were soft early-on, making for 0.6938 previous highs until the yields lifted and NZD/USD fell to near 0.6915 before settling near 0.6920 prior to the RBNZ and their upbeat economic outlook.
The daily RSI is biased up while the 10-Day SMA was supporting. On the upside, the 21-D SMA at 0.6999 is the key target ahead of 0.7054.
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