Chart - Courtesy Trading View
NZD/USD was trading largely unchanged at 0.6128 at around 04:40 GMT.
The pair has failed to benefit from the RBNZ rate hike and fades the previous day’s corrective pullback from 26-month low.
The Reserve Bank of New Zealand (RBNZ) announced the 0.50% rate hike earlier on Wednesday, matching market expectations.
The statement that followed marked growth fears, noting that while there are near-term upside risks to consumer price inflation, there are also medium-term downside risks to economic activity.
On the data front, US NFIB Business Optimism Index for June slumped to the lowest since early 2013 while flashing 89.5 figures versus 93.1 prior.
Major trend in the pair remains bearish. Upside remains capped at 5-DMA. The pair has slipped below monthly cloud.
US CPI for June will be a crucial event. US Consumer Price Index (CPI) for June is expected to rise to 8.8% YoY from 8.6%.
Strong inflation numbers could increase the odds of a faster Fed rate hike and weigh on the pair. Any negative surprise could see the pair extending the corrective pullback.
