NZD/USD: stabilizing on PBoC interventions

By FXStreet FXStreet (Guatemala) – NZD/USD remains in a phase of consolidation after the heavy selling at the start of 2016. There is some stability back in the antipodeans as PBoC continue to try and stabilize the Yuan so that it devalues at a pace preferable to them.

In the absence of concrete data though, the bird is subject to a higher probability that the RBNZ will indeed hike rates this year and perhaps even sooner than later. The RBNZ’s inflation target of 2% will likely remain under pressure and could have the Central Bank to act and cut interest rates again in 2016 and below the record lows of 2.5% since the OCR was introduced back in March 1999 at 4.5%.

NZD/USD levels

Technically, the 1hr sma 50 at 0.6547 is first resistance before 0.6590 and 0.6572 and 20 sma on the 4hr chart. The recovery from Nov business and 0.6428 low is compromised by 2/3rds of the move in the downtrend from 0.6870 to current lows of 0.6510.
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Source:: FX Street