11 Dec 2014
NZD/USD unimpressed after RBNZ’s status quo
FXStreet (Mumbai) - The New Zealand dollar trades modestly higher, after having jumped against the greenback in the early Asian morning after Reserve Bank of New Zealand (RBNZ) left its monetary policy unchanged.
The NZD/USD pair trades almost flat at 0.7820 levels, after climbing higher from 0.7796 levels post the policy announcement. The pair quickly gave up gains as markets had already priced-in a no change in interest rates by RBNZ. “The RBNZ kept the OCR unchanged at 3.50% as expected, but reinforced its explicit tightening bias – a hawkish surprise to the markets.”
Markets were left unimpressed as the RBNZ Governor Wheeler reiterated his stance on the NZD exchange rate, “The exchange rate does not reflect the decline in export prices this year and remains unjustifiably and unsustainably high. We expect to see a further significant depreciation.”
NZD/USD Technical Levels
To the upside, the next resistance is located at 0.7892 (Dec 2 High), above which it could extend gains to 0.7913 (Dec 1 High) levels. To the downside immediate support might be located at 0.7793 (10-day SMA), below that at 0.7753 (20-day SMA) levels.
The NZD/USD pair trades almost flat at 0.7820 levels, after climbing higher from 0.7796 levels post the policy announcement. The pair quickly gave up gains as markets had already priced-in a no change in interest rates by RBNZ. “The RBNZ kept the OCR unchanged at 3.50% as expected, but reinforced its explicit tightening bias – a hawkish surprise to the markets.”
Markets were left unimpressed as the RBNZ Governor Wheeler reiterated his stance on the NZD exchange rate, “The exchange rate does not reflect the decline in export prices this year and remains unjustifiably and unsustainably high. We expect to see a further significant depreciation.”
NZD/USD Technical Levels
To the upside, the next resistance is located at 0.7892 (Dec 2 High), above which it could extend gains to 0.7913 (Dec 1 High) levels. To the downside immediate support might be located at 0.7793 (10-day SMA), below that at 0.7753 (20-day SMA) levels.