NZDUSD Bears in Control Before 0.64
NZDUSD is trading 0.28% lower at 0.6370 as the pair tries to stabilize and rebound above 44-month lows. RBNZ Governor Adrian Orr said in an interview last week that the 50 bps interest rate cut reduces the probability of having to do more later. Reserve Bank of New Zealand cut aggressively the OCR by 50bp to 1.00%, while the market forecasting a 25bp cut. The RBNZ Monetary Policy Committee expects growth to remain soft in the near term. RBNZ has revised its GDP forecasts lower accordingly by -0.3 to -0.5 through the second quarter of next year.
On the technical side, bears are in full control of NZDUSD, as it trades below all major daily and hourly moving averages. Now the pair’s immediate support stands at 0.6364 today’s low which if breached the pair will head to 0.6346 the low from January 2016. On the upside, immediate resistance stands at 0,6402 yesterday’s high and then at 0.6498 the high from August 9th. All in all NZDUSD technical picture is bearish and, a visit down to 2016 lows looks possible.