|   Technicals


  |   Technicals


FxWirePro: NZD/USD tests 0.65 handle on RBNZ-led optimism, further gains on cards

Chart - Courtesy Trading View 

Spot Analysis:

NZD/USD was trading 0.38% higher on the day at 0.6486 at around 08:00 GMT

Previous Week's High/ Low: 0.6417/ 0.6228

Previous Session's High/ Low: 0.6468/ 0.6423

Fundamental Overview:

The Reserve Bank of New Zealand (RBNZ) announced an interest rate lift to 2.0%, from 1.5% prior, the third such move in 2022.

The central now sees higher future rates to prior outlooks, sending kiwi higher across the board.

In the press conference, RBNZ Orr has cleared that the central bank is focused to slow down the inflationary pressures and restrain aggregate demand.

The substantial hawkish surprise from the RBNZ, with its updated rate projections likely to keep the kiwi underpinned.

Technical Analysis:

- NZD/USD holds support at 21-EMA, weakness only on break below

- Stochs and RSI are sharply higher, momentum is bullish. RSI is above the 50 mark

- Bullish 5-DMA crossover on 20-DMA raises scope for further gains

- MACD and ADX support upside in the pair

Major Support and Resistance Levels:

Support - 0.6436 (5-DMA), Resistance - 0.6579 (55-EMA)

Summary: NZD/USD was trading with a bullish bias. Scope for test of 38.2% Fib at 0.6528

  • Market Data

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.