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NZD/USD: 20 SMA caps recoveries as price drifts lower

FXStreet (Guatemala) - NZD/USD recovered from the lows on the 0.66 handle finding space again on the 0.67 handle post the RBNZ refraining from cutting rates just yet, but offers came in and the price then stabilised at 0.6680.

Pressures remain to the downside with the FOMC sounding hawkish leaving the door wide open for a rate hike in December while waiting to see an improvement in the jobs sector and looking for further signs that the inflation target of 2% is within reach while showing little concern for external headwinds affecting the US economy.

Full text October FOMC statement

However, the RBNZ on the global economy downgraded its view somewhat, as noted by analysts at RBNZ, stating that “global economic growth is below average and global inflation is low despite highly stimulatory monetary policy”. It also added that “concerns remain about the prospects for slower growth in China and East Asia especially”.

NZD/USD levels

Technically, key support comes as circa 0.6580 on the downside while caped by the 20 SMA on the hourly sticks. The broader daily bearish trend is pressured and intact below the 200 DMA at 0.7017 while the bottom of the recent range is 0.6500.

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