NZD/USD extends the post-RBNZ rejection slide from 200-DMA, drops to near one-month low By HareshMenghani NZDUSD RBNZ Fed Bonds Currencies
NZD/USD faded an intraday bullish spike to the very important 200-day SMA, around the 0.6900 mark.The USD climbed to a near two-year high and also contributed to the ongoing downward trajectory.pair dropped to a near one-month low during the early European session and is now looking to extend the decline further below the 0.6800 round-figure mark.
The pair struggled to capitalize on its post-RBNZ bullish spike to the 0.6900 round-figure mark and witnessed a dramatic intraday turnaround from the very important 200-day SMA. The New Zealand central bank raised interest rates by a hefty 0.5% for the first time since 2000 to curb soaring inflation. This marked the fourth consecutive rate increase from the Reserve Bank of New Zealand, though was not accompanied by a change in the.
Fed Governor Lael Brainard's comments on Tuesday reaffirmed market expectations for a more aggressive policy tightening by the Fed. In fact, Brainard said that the Fed will proceed with a series of interest rate hikes, as well as an effort to trim its balance sheet. This followed the release of the US consumer inflation figures, which showed no signs of easing in March and accelerated to levels last seen in 1981.
Bulls seemed rather unimpressed by a generally positive tone around the equity markets, which tends to benefit perceived riskier currencies, including the kiwi. Apart from this, the emergence of fresh selling near a technically significant moving average and a subsequent break below the 0.6800 mark favours bearish traders. This supports prospects for an extension of the recent sharp pullback from the YTD peak and a slide towards the next relevant support near the 0.6745-0.6740 region.
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