30 Jan 2015
NZD/USD: Heavily offered courtesy of RBNZ
FXStreet (Bali) - The New Zealand Dollar was battered during Thursday's session after a more dovish-than-expected RBN - lowest at 0.7233 - finally realizing that the tightening of policy - 3.5% interest rate - may have gone too far, too quick, given the global deflationary pressures, an event impossible to anticipate but potentially requiring an adjustment by lowering rates at some point this year.
According to Jim Langlands, Founder at FXCharts: "The RBNZ statement sent the Kiwi sharply lower at yesterday’s open and it has shown no sign of recovery since. In doing so, it has taken out the 21 March 2011 low at 0.7289 and there is now little support to be seen until the spike low at 0.7115 (17 Mar 2011). The topside is going to find plenty of interested sellers on any rally towards 0.7310/15, above which could head back towards the first Fibo resistance at 0.7390 (23.6% of 0.7880/0.7233). Trading from the short side and selling rallies remains the theme."
According to Jim Langlands, Founder at FXCharts: "The RBNZ statement sent the Kiwi sharply lower at yesterday’s open and it has shown no sign of recovery since. In doing so, it has taken out the 21 March 2011 low at 0.7289 and there is now little support to be seen until the spike low at 0.7115 (17 Mar 2011). The topside is going to find plenty of interested sellers on any rally towards 0.7310/15, above which could head back towards the first Fibo resistance at 0.7390 (23.6% of 0.7880/0.7233). Trading from the short side and selling rallies remains the theme."