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    NZD/USD rallying hard after RBNZ maintained staus-quoHaresh Menghani

    The NZD/USD pair surged to 0.7147, its highest level since June 2015, after the RBNZ decided to hold its key benchmark rates unchanged at 2.25%.Heading into the announcement, the pair had been climbing higher despite of being underpinned by expectations a 25bps rate cut by RBNZ. After a surprise rate-cut in March, RBNZ hinted toward further easing during its monetary policy announcement in April. However, a status-quo monetary policy produced a knee-jerk reaction and took bears off-guard, boosting the kiwi through 2016 highs strong resistance near 0.7050 area. Meanwhile, the central bank also upgraded its CPI outlook and now see inflation reaching 2% by Q4 of 2017 ahead of Q1 2018 previous forecasted. A fresh bout of buying interest assist the pair further beyond 0.7100 handle to over 1-year high level near 0.7150 and a follow-through momentum might continue boosting the pair in the near-term. Technical levels to watch From current levels, momentum above 0.7150-70 zone is likely to get extended towards June 2015 highs resistance near 0.7230-35 area before the pair aims towards reclaiming 0.7300 handle.Meanwhile on the downside, weakness below 0.7100 handle support might now get bought into and hence is likely to be limited by a previous strong resistance, now turned immediate strong support, near 0.7060-50 region. 


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