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NZD/USD recovers from 0.7750 post-RBNZ

FXStreet (Edinburgh) - The Kiwi is accelerating its decline on Wednesday, dragging NZD/USD to fresh lows in the mid-0.7700s.

NZD/USD weaker on RBNZ decision

In line with market expectations, the RBNZ left intact its monetary policy today, with the repo rate on hold at 3.5%. Despite the decision was priced in by markets, spot could not help a drop to 0.7755/50 although it later proved to be ephemeral, recovering the vicinity of 0.7800 the figure. The next risk event for the pair will be Yellen’s speech and the US GDP Annualized, both due tomorrow and both carrying the potential to trigger further USD strength.

NZD/USD levels to consider

The pair is now losing 1.74% at 0.7782 with the next support at 0.7708 (low Sep.29) followed by 0.7670 (low Aug.5 2013). On the other hand, a break above 0.7959 (high Oct.28) would aim for 0.8000 (psychological level).

New Zealand RBNZ Interest Rate Decision meets forecasts (3.5%)

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The Reserve Bank of New Zealand maintained its official cash rate unchanged at 3.5% according to a recent press release. The RBNZ also commented that the NZD is under pressure as "current level remains unjustified and unsustainable and continues to constrain growth in the tradables sector."
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