The NZD/USD Falls on a Dovish RBNZ
Rowan Crosby • 1 min read
The NZD/USD has crashed as the RBNZ has come out and turned dovish on their interest rate outlook.
We have seen a number of the key central banks turning dovish so it comes as no big surprise here, but the NZD/USD is still getting sold heavily.
Previously the RBN said interest rates could go up or down. That changed to the next move likely to be down which is clearly more dovish than neutral.
The move is also weighing on the AUD/USD which is in the same sort of boat.
In other news, the RBNZ also left rates unchanged, which was in line with expectations.
The Kiwi Outlook
We’re now eyeing off the 0.6800 level and price appears to be pushing hard to the downside.
At the moment, there is really no hint of a bounce just yet which is very bearish.
Obviously, if price breaks that big support region, we could see a multi-day move in the making.