NZD/USD: offered as RBNZ leaves rates on hold with a hint of dovishness in the statement

Currently, NZD/USD is trading at 0.6878, down -0.93% on the day, having posted a daily high at 0.6945 and low at 0.6878.

Uncertainties remain and policy may need to adjust accordingly. That is dovish. NZD/USD has dropped back and is reversing all the preempted hawkishness that some had been expecting from today's meeting. Domestic outlook growth remains positive though and says MP will remain accommodative for a considerable period. This has come in stark contrast to what had been priced in. The RBNZ also delivered their quarterly statement echoing much of what we have known for some time and the takeaway here is that RBNZ is concerned about global headwinds and will remain on hold. Wheeler will be speaking at the presser n the top of the hour and we will be looking for further comments there for forward guidance in respect to their outlook for the economy and rates. 

RBNZ keeps interest rates on hold at 1.75%

NZD/USD levels

The 0.6820 level is first support. Below 0.6700 we have the 0.6675 level as the 29th May 2016 high. On a break higher through the 0.69 handle, 0.6920/30 is the immediate resistance area still along with the 20-d sma at 0.6933 ahead of psychological 0.70 level. The 17th April highs of 0.7035 are next up ahead of 0.7060/70, being a further key resistance area through the 200-d ema (0.7047). The double bottom at 0.7130 as the mid-Feb lows could be a strong area of resistance.