The NZD/USD is up 75 pips immediately after it became known that the Reserve Bank of New Zealand increased its interest rates by 50 basis points to 2%. With the rise, the pair has reached a twenty-day high at 0.6500.
The kiwi has shot up with the news driven by the RBNZ statement, which assured that Rates will continue to rise in the next meetings until inflation is placed within the target range of 1 to 3%.. “Once aggregate supply and demand are more balanced, OCR may return to a lower, neutral level,” the publication added.
After digesting the news, NZD/USD traders will focus on data from the United States, which will release its April Durable Goods Orders today and FOMC Minutes of the May 4 meeting.
With the pair trading at time of writing above 0.6477, gaining 0.10% daily, next resistance on a further rally awaits in the area 0.6557/68, where are the maximums of May 6 and 5, respectively. Above, the main barrier awaits in 0.6645roof of April 25.
To the downside, initial support is at 0.6419, minimum of the day. A break below the zone 0.6400 can lead to the level 0.6363where is the floor of May 20.
Source: Fx Street