The New Zealand dollar has reacted upwards to the aggressive RBNZ rate hike, the first of 75 basis points after five consecutive increases of 50 bp. The NZD/USD has soared close to 65 pips, lifting its price to 0.6192, its highest level in three days.
The Reserve Bank of New Zealand (RBNZ) has announced this Wednesday an interest rate hike that brings its reference rates (OCR) to 4.25% from the previous 3.5%, as expected.
In its statement, the Central Bank Committee agreed that the OCR must reach a higher level, and sooner than indicated above, to ensure that inflation returns to within its target range over the medium term.
Kiwi (NZD) traders will now be watching how the data digests, as at time of writing, the NZD/USD pair is trading above 0.6173, gaining 0.32% daily.
NZD/USD Levels
If it continues to rise, the first resistance appears at 0.6203/066, where are the maximum levels of November 15 and 18, respectively. Above, the target is in the zone 0.6250/55played on August 25, before firing at 0.6469ceiling of August 12 and of the last five months.
To the downside, initial support is at 0.6129today’s daily low, followed by 0.6087minimum of November 21 and 0.6064floor of November 17.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
