NZDUSD Rebound Stalls at 100 Hour MA
NZDUSD is trading 0.22 percent lower at 0.6493 as the pair rebounds for second day after 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 – although at 2.5% y/y in Q1, it is the envy of most other DM economies. Domestic demand is under pressure from a slowing housing market and subdued business confidence. The central bank has revised its GDP forecasts lower accordingly by -0.3 to -0.5 through the second quarter of next year.
On technical side the pair is bearish, but today the short term momentum has improved as the pair breached above the descending trendine and now makes an attempt to break above the 100 hour moving average, which if happens will trigger some intraday bids. Now the pair’s immediate support stands at 06459 the 50 hour moving average and then at 0.6346 the low from January 2016. On the upside immediate resistance stands at 0,6542 the 200 hour moving average while more offers will emerge at 0.6621 the 50 day moving average. All in all NZDUSD is bearish and traders have to wait until the dust from the unexpected interest rate cut settles down.