Back
12 Mar 2014
NZD/USD volatile on RBNZ increasing rates by 0.25BP
FXStreet (Guatemala) - NZD/USD has been volatile around the decision to raise rates even though the decision comes as expected.
NZD/USD dumped to a low of 0.8437 on the release and pulled back to 0.8480 territory before heading south again. The decision to raise was not a surprise to markets that had been prising in a tightening cycle to commence as soon as this month. The RBNZ have said that rates will increase by 2pct in 2 years and the current exchange rate is not going to be sustainable in the long run with inflation pressures that are increasing.
NZD/USD Levels
The 20 DMA is 0.8367, the 50 DMA is 0.8304 and the 200 DMA is 0.8151. RSI (14) reads 49.05 Supports are ascending from 0.8393, 0.8400, 0.8425, 0.8432. Spot is 0.8459 and resistances are 0.8507, 0.8523, 0.8544 and 0.8583.
NZD/USD dumped to a low of 0.8437 on the release and pulled back to 0.8480 territory before heading south again. The decision to raise was not a surprise to markets that had been prising in a tightening cycle to commence as soon as this month. The RBNZ have said that rates will increase by 2pct in 2 years and the current exchange rate is not going to be sustainable in the long run with inflation pressures that are increasing.
NZD/USD Levels
The 20 DMA is 0.8367, the 50 DMA is 0.8304 and the 200 DMA is 0.8151. RSI (14) reads 49.05 Supports are ascending from 0.8393, 0.8400, 0.8425, 0.8432. Spot is 0.8459 and resistances are 0.8507, 0.8523, 0.8544 and 0.8583.