NZD/USD burnt out and consolidates

By FXStreet NZD/USD is currently trading at 0.6661 with a high of 0.6710 and a low of 0.6618.

NZD/USD has been consolidating the supply of yesterday’s post surprise cut by the Central Bank, where the RBNZ cut rates by 25bps to 2.25% in an effort to preempt the negative economic headwinds that threaten prospects of the economy reaching the RBNZ’s inflation target.

For the session overnight in the US, the Kiwi was mostly recovering in a bullish drift and was unnerved by the drop in oil prices on the back of Iran not agreeing to a production freeze along with reports that OPEC and non-OPEC members are cancelling key talks and negotiations that were due to take place in Russia sending oil lower by over $1.00 bbl. There has been very little reaction the New Zealand Business NZ Manufacturing PMI (Feb) at 56.0 vs prev rev 58.0 as well.

NZD/USD levels

NZD/USD fell below the 20 dma at 0.6666 tested the 200 dma at 0.6628 with a low so far of 0.6619. The key level is the 50 dma at 0.6605 and 15th Feb 0.6545 on the downside, leaving prospects of the 0.68 handle back in the distance, 3rd March high …read more

Source:: FX Street