Key Points
- The New Zealand Dollar nosedived below 0.6900 against the US Dollar after the RBNZ rate decision.
- The NZDUSD pair broke a major bullish trend line with support at 0.6900 on the hourly chart to ignite a downside wave.
- In New Zealand, the RBNZ Interest Rate Decision May 2017 was announced by the Reserve Bank of New Zealand.
- The result was in line with the forecast, as the central bank kept rates at 1.75% (May 2017).
NZDUSD Technical Analysis
The New Zealand Dollar was under heavy pressure as it broke a crucial support at 0.6900 against the US Dollar after the RBNZ rate decision. The NZDUSD even cleared the 0.6880 support zone and 21 hourly simple moving average to trade towards 0.6800.
A low was formed at 0.6818 and the pair started a recovery. On the upside, the 23.6% Fib retracement level of the last decline from the 0.6951 high to 0.6818 low is waiting to act as a resistance.
On the downside, a close below 0.6818 and 0.6800 might ignite heavy slide towards 0.6750 in the near term if sellers remain in control.
RBNZ Interest Rate Decision
Recently in New Zealand, the RBNZ Interest Rate Decision May 2017 was announced by the Reserve Bank of New Zealand. The forecast was lined up for the central bank to keep rates at 1.75%
The outcome was in line with the forecast, as the central bank kept rates at 1.75% (May 2017). The statement released mentioned that “GDP growth in the second half of 2016 was weaker than expected. Nevertheless, the growth outlook remains positive, supported by on-going accommodative monetary policy, strong population growth, and high levels of household spending and construction activity”.
Overall, the NZDUSD was not impressed, nosedived, and may extend declines below 0.6820 in the near term.
