FxWirePro: NZD/USD reverses RBNZ-led gains, cautiously optimistic comments from Governor Orr weigh

Chart - Courtesy Trading View 

NZD/USD was trading 0.09% higher on the day at 0.6350 at around 04:40 GMT.

The pair initially gained momentum after the Reserve Bank of New Zealand’s (RBNZ) 50 bps rate hike.

RBNZ matched market forecasts and signaled suitability for further tightening pushing the kiwi higher across the board.

However, the pair reversed from session highs at 0.6383 as RBNZ Governor Adrian Orr seemed cautiously optimistic during the press conference.

Orr hinted at sub-par growth and ruled out 0.75% rate hike. Further, fears surrounding China, Europe, as well as a cautious mood ahead of the key data/events, challenge bulls.

Focus now on Federal Open Market Committee (FOMC) meeting minutes, for further impetus.

The pair is hovering around daily cloud. 55-EMA is offering support at 0.6322. Break below will drag the pair lower.

Major Support Levels: 

S1: 0.6322 (55-EMA)

S2: 0.6306 (20-DMA)

Major Resistance Levels: 

R1: 0.6389 (5-DMA)

R2: 0.6424 (110-EMA)

Summary: NZD/USD pivotal at daily cloud and 55-EMA support. Break below will plummet prices further. FOMC minutes will be key for further direction.