23 Jul 2015
NZD/USD strongly bid near 0.6640 post RBNZ
FXStreet (Mumbai) - NZD/USD remains heavily bid in the mid-Asian session, as the New Zealand dollar extends its upbeat momentum following Reserve Bank of New Zealand’s (RBNZ) rate decision overnight.
NZD/USD faces stiff resistance around 0.6650
Currently, the NZD/USD pair trades higher by 0.85% at 0.6633, testing highs reached at 0.6637 last hours. The Kiwi jolted higher after the RBNZ adopted a positive tone for the NZD while stating that its depreciation was helping to support the economy and inflation.
While markets shrugged off the 0.25bp rate cut announced by the central bank, taking the Official Cash Rate (OCR) to 3% as traders had mostly priced-in a rate cut at the July meeting.
RBNZ Governor Graeme Wheeler said in a statement on Thursday, "The New Zealand dollar has declined significantly since April and, along with lower interest rates, has led to an easing in monetary conditions.”
“While the currency depreciation will provide support to the export and import competing sectors, further depreciation is necessary given the weakness in export commodity prices."
Moreover, broad based US dollar weakness versus its major peers on profit-taking after the recent strength also supported the NZD/USD pair.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6656 (July 21 High) levels and above which it could extend gains to 0.6700. To the downside immediate support might be located at 0.6558 (July 22 Low) below that at 0.6502 (July 20 Low) levels.
NZD/USD faces stiff resistance around 0.6650
Currently, the NZD/USD pair trades higher by 0.85% at 0.6633, testing highs reached at 0.6637 last hours. The Kiwi jolted higher after the RBNZ adopted a positive tone for the NZD while stating that its depreciation was helping to support the economy and inflation.
While markets shrugged off the 0.25bp rate cut announced by the central bank, taking the Official Cash Rate (OCR) to 3% as traders had mostly priced-in a rate cut at the July meeting.
RBNZ Governor Graeme Wheeler said in a statement on Thursday, "The New Zealand dollar has declined significantly since April and, along with lower interest rates, has led to an easing in monetary conditions.”
“While the currency depreciation will provide support to the export and import competing sectors, further depreciation is necessary given the weakness in export commodity prices."
Moreover, broad based US dollar weakness versus its major peers on profit-taking after the recent strength also supported the NZD/USD pair.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6656 (July 21 High) levels and above which it could extend gains to 0.6700. To the downside immediate support might be located at 0.6558 (July 22 Low) below that at 0.6502 (July 20 Low) levels.