NZD/USD Recovers Losses, but RBNZ Rate Cut Caps Gains
The selling interest in the NZD ran out of team, helping the NZD/USD pair recover losses, but the gains are hard to come on account of RBNZ’s dovish stance.
Trades above 200-DMA
The spot recovered from the Asian session low of 0.6618 to trade above 200-DMA located at 0.6628 levels. However, RBNZ not only surprised with a rate cut, but also said there is more to come. Consequently, the cross is struggling to score gains despite having recovered from the lows.
The spot turned positive on the day for a brief moment and clocked a high of 0.6658 but quickly fell back to trade flat to positive on the day around 0.6650 levels.
NZD/USD Technical Levels
The immediate support is seen at 0.6635-0.6632 (100-DMA and 200-DMA), under which the pair may re-test the 50-DMA at 0.6605. On the other hand, a break above 0.66 handle, which if penetrated could put 5-DMA hurdle at 0.6731 to test.
(Market News Provided by FXstreet)
