Chart - Courtesy Trading View
NZD/USD was trading 0.13% higher on the day at 0.6161 at around 04:30 GMT.
The pair surged over 0.5% after the Reserve Bank of New Zealand hiked interest rates by a record 75 basis points to 4.25% earlier on Wednesday.
The pair hit session highs at 0.6192, but quickly reversed gains after Governor Adrian Orr warned of a potential economic downturn in the near-term.
New Zealand faces its highest inflation rate in 32 years. Its annual CPI inflation was 7.2% in September, well above the RBNZ’s 1% to 3% target range.
The elevated readings are likely to invite more interest rate hikes by the RBNZ, which could potentially dampen economic activity.
The major is extending sideways above 110-EMA and daily cloud, weakness only on break below. Technical indicators support upside, scope for test of 200-DMA at 0.6301.
