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4 Feb 2015
NZD/USD rallies on RBNZ Wheeler’s speech
FXStreet (Mumbai) - NZD/USD extended its recovery mode in to the European morning, rallying to fresh session highs as traders continue to cheer Reserve Bank of New Zealand (RBNZ) Governor Wheeler’s dovish tone.
Retraces from day’s high at 0.7449
Currently, the NZD/USD extended gains and trades at 0.7425 levels, up 0.92% on the day on its way to retest 0.7500 levels. The kiwi remains supported on RBNZ Wheeler’s neutral monetary-policy stance in a speech to the Canterbury Employers' Chamber of Commerce in Christchurch in early Asian hours.
Wheeler noted, "In the current circumstances, the Bank expects to keep the Official Cash Rate (OCR) on hold for some time, and that future interest rate adjustments, either up or down, will depend on the emerging flow of economic data,"
Wheeler also said that the New Zealand dollar is still "unjustified" in terms of current economic conditions, and "unsustainable" in terms of long-term economic fundamentals.
"We expect to see a further significant depreciation,"
RBNZ Wheeler’s neutral policy stance calmed increased expectations of a possible rate cut sooner than expected this year which continues to lift the NZD/USD pair.
NZD/USD Technical Levels
To the upside, the next resistance is located at 0.7450 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
Retraces from day’s high at 0.7449
Currently, the NZD/USD extended gains and trades at 0.7425 levels, up 0.92% on the day on its way to retest 0.7500 levels. The kiwi remains supported on RBNZ Wheeler’s neutral monetary-policy stance in a speech to the Canterbury Employers' Chamber of Commerce in Christchurch in early Asian hours.
Wheeler noted, "In the current circumstances, the Bank expects to keep the Official Cash Rate (OCR) on hold for some time, and that future interest rate adjustments, either up or down, will depend on the emerging flow of economic data,"
Wheeler also said that the New Zealand dollar is still "unjustified" in terms of current economic conditions, and "unsustainable" in terms of long-term economic fundamentals.
"We expect to see a further significant depreciation,"
RBNZ Wheeler’s neutral policy stance calmed increased expectations of a possible rate cut sooner than expected this year which continues to lift the NZD/USD pair.
NZD/USD Technical Levels
To the upside, the next resistance is located at 0.7450 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