NZD/USD: Three weeks of continuous bearish momentum aided by rate cut!
Good afternoon traders and welcome to EverythingFX.
The New Zealand Dollar is currently trading at 0.64340 against the US dollar during today's London session.
The Markets are left in shock as the New Zealand Dollar smashes through 0.65000 and you may be wondering why? As you already know there is a massive slowdown in the global economy as a whole which has been discussed several times on our market news section and early morning podcasts! In order for New Zealand to get ahead of the curve, we saw a 50 BPS rate cut early hours this morning which came as a surprise to the market as a 25 BPS cut was forecast leading into the event.
On a Technical picture, we can see there is a minor level of support just above our monthly support at 0.63500 where we have come to pin this area to the T as displayed in the screenshot above. I would need a break of this level to see us back at 0.60000/0.610000 however going forward I would not be surprised if we pop up to re-test 0.65000.
Fundamentally, we need to monitor data out of New Zealand to potentially expect where the RBNZ would be going next. Something to also factor in is the dovish turn that the Fed have no taken in the US, which will out this pair between a rock and a hard place in terms of looking for a technical setup. Do stay tuned to our market news section, morning podcast as well as our social media accounts for further updates!