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NZD/USD: Sold hard on RBNZ statement

FXStreet (Bali) - NZD/USD has been sold off aggressively on the back of a very effective jawboning by the RBNZ, which just published a statement noting that the Kiwi exchange rate remains unjustified and unsustainable.

Traders were quick to sell the Kiwi, with the boldness of Wheeler's comemnts, including the possibility of intervention, taking some by surprise, especially after some would have expected the RBNZ Chief to soften his tone towards the Kiwi on the back of an 8 cents depreciation against the US Dollar in the past 2 months.

Technically, there is little in the way for bears to reach the next big target at 0.80, with the lowest printed so far seen at 0.8020 after a 45/50 pips sharp drop. The combination of jawboning a currency that by itself is already suffering strong negative sentiment was a storm too bearish to deal with those bottom pickers out there.

RBNZ: Kiwi exchange rate unjustified and unsustainable

The RBNZ has published a media statement, now crossing the main wires - Reuters -, citing Governor Wheeler as saying that he welcomes move to more sustainable exchange rate, adding that the exchange rate level remains unjustified and unsustainable. Besides, Wheeler also said that unsustainablility is a factor in intervention feasability.
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