FxWirePro: NZD/USD consolidates previous session's slump, outlook bearish
Chart - Courtesy Trading View
NZD/USD was trading 0.04% lower on the day at 0.6869 at around 06:00 GMT, outlook is bearish.nzd
The kiwi was hammered lower on Wednesday after the Reserve Bank of New Zealand (RBNZ) disappointed markets with smaller-than-expected interest rate hike.
RBNZ hiked its interest rate to 0.75% and raised its long-term cash rate projection by 50 bps. Investors had expected a bigger hike and long-term cash rate projection from the central bank.
On the other side, FOMC minutes on Wednesday showed policymakers readiness to speed up the taper of their bond-buying programme if high inflation held.
Further data released overnight showed readings on the labour market and consumer spending outstripped forecasts, while inflation continued to heat up.
The major has broken major trendline support (Symmetric Triangle base) and has slipped below key support at 110-week EMA at 0.6887.
Price action has been capped at 200-month MA and the pair is extending choppy trade on the monthly charts.
Technical indicators on the weekly and daily charts have turned bearish, scope for test of 200-week MA at 0.6759.