- Rabobank (based on FXStreet)
An unexpected rate cut from the RBNZ weakened New Zealand's domestic currency against other major peers. As a result, the NZD/USD pair dropped 100 pips lower, breaching two closest support levels. Nevertheless, the Kiwi appears to be regaining the bullish momentum, as RBNZ's governor stated that there will be no further rate cuts. Moreover, a tough support, namely the weekly S1, the 55, 100 and 200-day SMAs, rests just below the opening price, which is bound to spark a recovery in the NZD's price. The 20-day SMA around 0.6668 is the closest resistance, but a surge towards the 0.67 level should be the absolute intraday high.
SWFX traders' sentiment remains in perfect equilibrium, whereas the portion of orders to sell the NZ Dollar increased from 52 to 80%.