FxWirePro: NZD/USD spikes over 1% to test 0.69 handle, kiwi buoyed as markets price out negative interest rates following Orr’s less dovish comments

NZD/USD chart - Trading View 

NZD/USD spiked in the Asian trade today to test 20-month highs at 0.6904, bias strongly bullish.

Kiwi buoyed as markets price out negative interest rates following RBNZ Governor Orr’s less dovish comments.

The Reserve Bank of New Zealand (RBNZ) at its policy meeting today held interest rates at 0.25% as expected, while adding 100 billion dollars into the LSAP.

New Zealand 10-year bond yield hits highest since July 28 on increased hopes for coronavirus vaccine and the Reserve Bank of New Zealand's upbeat take on the economy. 

The central bank said that both the domestic and global economy has been more resilient than previously expected and there is less urgency to reduce rates to sub-zero levels.

Technical studies suggest upside for the pair. Price action is extending gains above 200W MA. Momentum studies are bullish. 

Volatility is rising and scope for continuation of upside. Next major resistance lies at 110M EMA at 0.6968 ahead of 78.6% Fib at 0.7111.

5-DMA is immediate support at 0.6810. Retrace below 200W MA at 0.6768 negates near-term bullishness.