Back
13 Mar 2014
Kiwi has stalled at 0.8550 resistance after a spectacular growth
FXStreet (Moscow) - The RBNZ rate hike was widely expected, but investors rejoiced anyway as NZD/USD broke above 0.8500 and settled down only at 0.8550; the upside bias is still dominant.
RBNZ lived up to expectations
NZD/USD has been nervous for since the start of the week as the markets waited for the key event of the week - RBNZ monetary policy decision. It’s been keeping close to the main resistance level of 0.8500, even despite bad news from China and heightened geopolitical tensions, as investors hoped for the rate hike. Now we know that the central bank did not let them down. The Bank raised the official cash rate to 2.75% from 2.5% and commented positively upon the economic situation in its rate statement. Kiwi reacted positively to the news and spiked to current Asian highs at 0.8567. Later during the day the market focus will shift to Ukraine/Crimea/Russia news, which may trigger the downside correction of NZD/USD. Should the pair manage to firmly settle above 0.8500 the bulls will try to push it higher to 0.8600. The support comes at 0.8520 and followed by 0.8500.
What are today’s key NZD/USD levels?
Today's central pivot point can be found at 0.8495, with support below at 0.8465, 0.8406 and 0.8376, with resistance above at 0.8554, 0.8585 and 0.8644. Hourly Moving Averages are bullish, with the 200SMA at 0.8438 and the daily 20EMA at 0.8390. Hourly RSI is neutral at 74.
RBNZ lived up to expectations
NZD/USD has been nervous for since the start of the week as the markets waited for the key event of the week - RBNZ monetary policy decision. It’s been keeping close to the main resistance level of 0.8500, even despite bad news from China and heightened geopolitical tensions, as investors hoped for the rate hike. Now we know that the central bank did not let them down. The Bank raised the official cash rate to 2.75% from 2.5% and commented positively upon the economic situation in its rate statement. Kiwi reacted positively to the news and spiked to current Asian highs at 0.8567. Later during the day the market focus will shift to Ukraine/Crimea/Russia news, which may trigger the downside correction of NZD/USD. Should the pair manage to firmly settle above 0.8500 the bulls will try to push it higher to 0.8600. The support comes at 0.8520 and followed by 0.8500.
What are today’s key NZD/USD levels?
Today's central pivot point can be found at 0.8495, with support below at 0.8465, 0.8406 and 0.8376, with resistance above at 0.8554, 0.8585 and 0.8644. Hourly Moving Averages are bullish, with the 200SMA at 0.8438 and the daily 20EMA at 0.8390. Hourly RSI is neutral at 74.