The NZD has been the headline FX story this morning – mainly because of the RBNZ.

There was no change to interest rates this morning, which was in keeping with analyst expectations.

Governor Wheeler has been busy though and has had plenty to say.

Most recently he mentioned that he would like to see a lower NZD, however there was no need for a rate cut to push inflation back towards 2%.

Key Support Below

In the aftermath of the interest rate announcement the NZD/USD bid up toward overhead resistance around the 073700 level – however it wasn’t able to make a charge at it.

Since that point, the Kiwi has been in steady decline and we now need to make a plan for it as it hits key support. So now the NZD/USD has turned bearish and the sentiment is negative.

If we can establish a range below support – then look for a continuation of the momentum and another leg lower, below 0.73000.