Skip to main content

NZD/USD slides after dovish RBNZ rate hold

Much earlier this morning, at 1am GMT, the Reserve Bank of New Zealand (RBNZ) did exactly as the markets expected and left their OCR unchanged at 5.5%. However, at the same time as doing nothing, the RBNZ signalled a reduced chance of another rate increase, thus removing the threat they had issued on that previously. The reaction in the NZD/USD was instantaneous. It dropped vertically from a high at 0.6178, to a low as 0.6103 so far. It is not much above that low as I write this update. The first support of note is now at 0.6093 (100 day moving average). I did note yesterday; not to be surprised to wake up to a changed price on this one today and that is certainly the case, as you can now see. The NZD/USD is currently trading at 0.6115 
 

Ready to Get Started?

Start here. Join 2.9M Libertex users around the world!