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FxWirePro: NZD/USD slips below 50-DMA, kiwi under pressure as ABS forecasts negative interest rates

NZD/USD chart - Trading View NZD/USD was trading 0.10% lower on the day at 0.6530 at around 04:25 GMT, scope for further weakness. The kiwi under pressure across the board after ABS bank forecasts negative interest rates…

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FxWirePro: NZD/USD slips below 50-DMA, kiwi under pressure as ABS forecasts negative interest rates
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NZD/USD chart - Trading View 

NZD/USD was trading 0.10% lower on the day at 0.6530 at around 04:25 GMT, scope for further weakness.

The kiwi under pressure across the board after ABS bank forecasts negative interest rates for New Zealand.

The RBNZ last week published a more dovish than expected monetary policy statement and raised its large-scale asset purchase program to $100 billion. 

Dovish policy statement published by the RBNZ has led analysts at ABS bank to project negative interest rates.

Technical indicators have turned bearish. Oscillators support bearish momentum. Bearish divergence adds to the downside bias.

The pair has slipped below 50-DMA and is now eyeing cloud support at 0.6491. Break into daily cloud will drag the pair lower.

Next major supports align at 110-EMA at 0.6419 ahead of 200-DMA at 0.6364. Violation at 200-DMA will open downside.
 

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