Home / Business / NZDUSD tumbles through support as RBNZ Hints Rate Cut as the next move

NZDUSD tumbles through support as RBNZ Hints Rate Cut as the next move

NZD / USD thumbs on more Dovish RBNZ

  • New Zealand Dollar tumbles as RBNZ tips lowering bias lowering
  • This echoes similar cautious Fed comment, ECB
  • NZD / USD can have more room to fall on technical characters

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The New Zealand Debt decreased as much as 1

.45% and sat for the worst result on a single day since February 6, th on a more stupid RBNZ price decision – [19659016] although the displacement in the feeling was expected . The deposit rate unchanged at 1.75% was the expected result, but the surprising part was that the central bank's transition to a view that favors a reduction in the pace over an increase.

The New Bank's Reserve Bank stated that the risks to the outlook have shifted to the disadvantage, following similar downgrades from their major central bank counterparts. The last one was last week's dovish Fed who essentially took climbs (2) off the table for this year. The causes from RBNZ were straightforward: weaker global growth, reduced domestic movement and low business sentiment.

RBNZ's cautious transition did not happen extremely well in shares. Nikkei 225 addressed the message, down about 0.75% at the time of this writing. At the same time, the anti-risk Japanese Yen and to some extent US dollars both gathered. At the same time, the pro risk Australian Dollar was cautiously lowered.

Looking ahead, the risk market will be close to eyeing market optimism, which can be dictated by the important US economic news flow. For the rest of the week, the United States offers GDP and Core PCE data threatening to weaken economists' expectations. This has been the trend since, with the weak consumer confidence in the last 24 hours as the latest example. Technical signs of a also turn lower in S & P 50 0 and .

NZD / USD 15-minute chart response to RBNZ

  NZDUSD tumbles through support as RBNZ Hints Rate Cut as Next Move

Chart created in TradingView

NZD / USD Technical Analysis

NZD / USD cleared one short-term rising support line from the beginning of this month after failing to clear a number of resistance beyond 0.6918. Look at the daily chart below to see a triple formation. If the couple succeeds in falling below the rising trend line from October, there may be more room for losses in the future. You can follow me on Twitter for the latest updates on NZD here at @ ddubrovskyFX .

NZD / USD Daily Chart

  NZDUSD Tumbles Through Support as RBNZ Hints Rate Cut as Next Move

Chart Created in TradingView

New Zealand Dollar Trading Resources

— Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comment section below or @ddubrovskyFX on Twitter

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