The NZD/USD Has Cracked: Bearish RBNZ
Rowan Crosby • 1 min read
The NZD/USD was the weakest performer in trade yesterday ahead of the RBNZ decision today. When that came out with interest rates on hold, it wasn’t really a shock. However, the statement is a bit on the bearish side.
It appears there is some chance of the next move being a cut. That isn’t too dissimilar to Australia. Where there is a case for more cuts. And different from the rest of the world.
They were also concerned about weak GDP growth and a slowing economy. As well as risks to the global economy.
While there hasn’t been a big reaction, as the damage appears to be done yesterday. It doesn’t bode well for later today when the US sessions resumes.
The Technical Picture
Yesterday the NZD/USD cracked a big support level at 0.6850. Price actually broke through 0.6800 as well and ran right into our target from yesterday at 0.6780.
That was the swing low from late last year. We haven’t really been pushing this low in some time. So it will take a bit of work to do to keep on moving.
But for the last two sessions, the Kiwi has been the weakest and that looks to be gaining steam.