RBNZ cuts by 25bps and the bird rallies to test 0.7400

Ross J Burland FXStreet

Currently, NZD/USD is trading at 0.7348, down -0.68% on the day, having posted a daily high at 0.7405 and low at 0.7265.

The RBNZ did not surprise markets and cut as expected by 25bps and the bird rallied on the back of the banks outlook on inflation hitting 2% in Q4 2018 vs Q3 2018, so markets are not anticipating too much moe fro the RBNZ. However, there was mention that the rate of the bird needs to be lower.

Trump’s victory: key economic areas to watch - Wells Fargo

The pair rallied from 0.7271 on the outcome to 0.7360 in a flash and now consolidates with eyes on 0.74 handle. The move comes after yesterday's other surprise event where Trump made it to the White House which begs the question around the Fed and whether they will hike rates in December, while the market’s outlook on the Fed fund flip-floppe,d in the US session, from a 30% chance of a Dec rate hike to almost 80% now. Fed tightening risks have strengthened? - Scotiabank

NZD/USD levels

With spot trading at 0.7348, we can see next resistance ahead at 0.7374 (Daily Classic PP), 0.7399 (Daily Open), 0.7399 (Monthly High), 0.7399 (Weekly High) and 0.7400 (Weekly Classic R1). Support below can be found at 0.7343 (Daily Classic S1), 0.7325 (Hourly 100 SMA), 0.7318 (Yesterday's Low), 0.7310 (Hourly 20 EMA) and 0.7289 (Weekly Low).

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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