FxWirePro: Kiwi gains sharply against major peers despite RBNZ cuts interest rate to record low
AUD/NZD is currently trading around 1.0593 marks. Pair made intraday high at 1.0672 and low at 1.0536 marks. Intraday bias remains bearish for the moment. In addition, a sustained close above 1.0709 will drag the parity …
Pair made intraday high at 1.0672 and low at 1.0536 marks.
Intraday bias remains bearish for the moment.
In addition, a sustained close above 1.0709 will drag the parity higher towards 1.0823/1.0976 (January 2016 high) /1.1062 (30D EMA) /1.1123/1.1298/1.1317 levels respectively.
Alternatively, current down fall will take the parity down towards key supports around 1.0536 1.0497, 1.0450, 1.0420, 1.0315(May 05, 2015 low), 1.0261 and 1.0109 marks respectively.
Important to note here that in a daily chart, 20D, 30D and 55D EMA heads down and confirms the bearish trend.
RBNZ cut the Official Cash Rate by 25 basis points to 2.00% on Thursday.
RBNZ says it cut rate because of exchange rate pressures on the economy.
RBNZ says its monetary policy tools are working.
RBNZ says the economy does not currently need a 50 basis point cut.
RBNZ says NZD would certainly be stronger without rate cuts.
RBNZ says 'race to bottom' in interest rates would stoke house price inflation.
