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NZD/USD spikes to four-month highs above 0.6200 following RBNZ announcement

  • The RBNZ maintains its interest rates at 5.5% for the fourth consecutive meeting.
  • NZD/USD rises about 60 pips to 0.6208.

The NZD/USD has shot up nearly 60 pips following the monetary policy announcement from the Reserve Bank of New Zealand (RBNZ), which has decided to keep its interest rates unchanged at 5.5% at its meeting. November. The pair has broken through the 0.6200 zone with the rise, setting new four-month highs at 0.6208.

The RBNZ leaves rates at 5.5% stating they will remain at high levels for a sustained period of time

This is the fourth consecutive meeting that the RBNZ has left rates unchanged, after last raising rates by 25 basis points last May. In its statement, the RBNZ noted that inflation remains too high and the Committee remains cautious about current inflationary pressures.

The Monetary Policy Committee agreed that interest rates should remain at a restrictive level for a sustained period of time so that consumer price inflation returns to its target and supports maximum employment.

NZD/USD Price Levels

With NZD/USD trading at the time of writing above 0.6200, gaining 1.14% on the day, the next upside target lies around 0.6220/0.6226, where the highs of August 1 and July 31 are respectively. Above, the main resistance is located at 0.6250, which was a ceiling in June, prior to the psychological zone of 0.6300.

To the downside, the pair would have to return below 0.6200 to aim towards 0.6100, round level, before stopping in the containment area located at 0.6060, low of November 27.

Source: Fx Street

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