Skip to content NZDUSD Broke $0.61 Resistance After Rate Cut
The New Zealand dollar slipped to around $0.609 on Wednesday, reaching its lowest point in seven weeks. This drop came after the Reserve Bank of New Zealand (RBNZ) made a widely anticipated decision to reduce interest rates by 0.5%.
This adjustment is the second in a row, lowering the official cash rate from 5.25% to 4.75%. Last month, the central bank made a more minor cut of 0.25%. The NZD/USD 4-hour chart below demonstrates the current conversion rate and the key levels.
NZDUSD Fundamental Analysis – 9-October-2024
The RBNZ remains optimistic about next week’s inflation data (CPI). The bank expects the figures to show annual inflation settling within its target range of 1-3%, moving closer to the ideal 2% midpoint. This expectation suggests the central bank’s strategy aims to keep inflation under control while supporting economic growth.
At the same time, market participants are turning their attention to the upcoming release of the FOMC meeting minutes later today. This release could offer important details about the Federal Reserve’s plans for interest rates and overall monetary policy, which may further influence global markets.
NZDUSD Analysis – 9-October-2024
FxNews—The NZD/USD currency pair trades in a bear market. Today, the price broke below the $0.610 resistance while the Stochastic oscillator showed weak bullish momentum.
The daily chart shows that the U.S dollar closed below the 100-period simple moving average agaisnt the New Zealand dollar. Therefore, we expect the downtrend to resume.
The resistance to the downtrend rests at $0.617. As long as this level holds, the currency pair’s primary trend should be considered bearish. In this scenario, the decline can extend to the next support level at $0.603.
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