NZD/USD takes a breather after English talks about rate cut

NZD/USD bulls are having a breather after New Zealand Finance Minister warned the Royal Bank of New Zealand (RBNZ) has the room to cut rates if needed.

Stalls near 38.2% Fibo

Pair once again ran out of steam as it neared 0.7095 (38.2% of Friday’s drop). A similar thing was noticed yesterday as the pair topped out at 0.7085. Today’s Asian session high stands at 0.7081 levels.

New Zealand Finance Minister did warn about room for rate cut but added further that the country is better placed than most to weather Brexit and the Kiwi could strengthen amid Brexit led risk-off. Earlier today, the government announced an unscheduled upward revision of the jobless rate, despite which the Kiwi rallied 60 pips or so.

NZD/USD Technical Levels

A break above immediate hurdle at 0.7095 (5-DMA + 10-DMA + 38.2% of Friday’s drop) could open up upside towards 0.7134 (50% of Friday’s drop) and 0.72 levels. On the lower side, 0.7041 (daily low) could act as a support, which if breached would shift risk in favor of a re-test of 0.6980 (June 27 low) and 0.6969 (Friday’s low) levels.