FXStreet (Guatemala) – NZD/USD has started to stabilize after a hard post dovish RBNZ and FOMC sell-off. Markets have now confirmation that from the FOMC that they are indeed concerned for global headwinds, but maintained that rate rises will be gradual, which sent markets into a risk-off spin, with stocks down on the day and the antipodeans getting hit up with supply.
Thereafter, the RBNZ left the OCR at 2.25% and also voiced similar concerns within a dovish statement. They also noted the weakness in the currency, but suggested that further downside was welcome. Before the RBNZ, what may have gone under the radar,
Fonterra cut its milk price forecast and said global conditions were challenging.
The trade balance for New Zealand was the final event and helped to stabilize the bird with exports beating expectations in a smaller than expected deficit. Exports arrived at $NZ4.43bn vs expected 4.38bn while the prior was 4.08bn.
US GDP Q4 next main event
We will now await the next main catalyst in the US being the GDP Q4 on Friday and that event can be watched live at FXStreet here.
NZD/USD levels
Technically, NZD/USD fell through the pivot of 0.6482 after being capped through the vicinity of the descending 100 sma on the 4hr sticks at 0.6510. There was some room allowed through to the high of 0.6532 overnight, but that was short-lived and the price is now on target to S2 at 0.6392 and S3 at 0.6361 ahead of 2016 lows of 0.6347. RSI (14) sits in neutral on the 4hr at 50.
(Market News Provided by FXstreet)