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NZD/USD bid and staying there after RBNZ

FXStreet (Guatemala) - NZD/USD has stabilized on the bid in the aftermath of the RBNZ interest rate decision having caught out many of the shorts on a squeeze that took the bird up to the mid point of the 0.67 handle where spot now oscillates.

The RBNZ cut interest rates by 0.25%, but were not overly dovish and were optimistic on hitting their inflation target, although leaving the door open for further cuts if appropriate although at the same time said that they are firmly on hold, hence the bid. They did say that the bird has further to go on the downside however. So it was a rather mixed message overall. See here for a breakdown on the event explained by Imre Speizer, analyst at Westpac.

NZD/USD levels

Technically, the bid is in to 70 on the RSI (14) and overbought while price is stabilizing shy of the 4th Dec highs of 0.6787. There is some room to go on the upside with momentum indicators strong. The 200 DMA at 0.6886 would be compelling of a break of the 0.68 handle while the 100 DMA comes as target for the downside at 0.6546.

RBNZ interest rate decision break down - ANZ

Analysts at ANZ explained that the RBNZ’s decision to cut the OCR today was of course against our own view.
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