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4 Feb 2015
NZD/USD rebounds sharply on RBNZ neutral stance
FXStreet (Mumbai) - NZD/USD bounced-back sharply in Asian morning after Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler's speech, having previously battered to fresh four year lows at 0.7290 levels.
Recovers from 0.7290 levels
Currently, the NZD/USD recovered losses and trades at 0.7396 levels, on its way to retest day’s high at 0.7421 levels. The kiwi bounced-off lows after RBNZ Wheeler presented a neutral monetary-policy stance and stated that the central bank expects to keep the interest rate on hold for some time. Wheeler’s statement eased growing speculations of RBNZ likely to go in for rate cut this year and pushed the Kiwi higher above 0.74 handle.
On Wheeler’s speech, Westpac chief economist Stephens noted, "The speech poured cold water on financial market speculation that the RBNZ might be considering OCR cuts,"
"And the speech was consistent with our interpretation of the actual OCR Review, which was that the RBNZ is now firmly on hold."
Meanwhile, traders shrugged off disappointing jobless rate from the Kiwi nation as the pair remains supported on Wheeler’s comments.
NZD/USD Technical Levels
To the upside, the next resistance is located at 0.7421 and above which it could extend gains to 0.7497 levels. To the downside, immediate support might be located at 0.7310 levels and below that at 0.7285 levels
Recovers from 0.7290 levels
Currently, the NZD/USD recovered losses and trades at 0.7396 levels, on its way to retest day’s high at 0.7421 levels. The kiwi bounced-off lows after RBNZ Wheeler presented a neutral monetary-policy stance and stated that the central bank expects to keep the interest rate on hold for some time. Wheeler’s statement eased growing speculations of RBNZ likely to go in for rate cut this year and pushed the Kiwi higher above 0.74 handle.
On Wheeler’s speech, Westpac chief economist Stephens noted, "The speech poured cold water on financial market speculation that the RBNZ might be considering OCR cuts,"
"And the speech was consistent with our interpretation of the actual OCR Review, which was that the RBNZ is now firmly on hold."
Meanwhile, traders shrugged off disappointing jobless rate from the Kiwi nation as the pair remains supported on Wheeler’s comments.
NZD/USD Technical Levels
To the upside, the next resistance is located at 0.7421 and above which it could extend gains to 0.7497 levels. To the downside, immediate support might be located at 0.7310 levels and below that at 0.7285 levels