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NZD/USD drops modestly after RBNZ, holds near 0.6800

11/8/2018, 11:29:42 AMTrading Strategies
NZD/USD drops modestly after RBNZ, holds near 0.6800

The NZD/USD pair remained around 0.6780/90 following the decision of the Reserve Bank of New Zealand to keep rates unchanged as expected. The kiwi peaked at 0.6813 after the statement hitting the highest intraday level since late July and then pulled back to where it was before. 

The RBNZ expects to keep the key rate at this level through 2019 and into 2020 and added there are both upside and downside risks, to their growth and inflation projections.

The pair is consolidating most of the gains of the last 24 hours. Since the beginning of November, it has risen more than 250 pips on the back of a weaker US dollar and NZ data.  Almost 24 hours ago, the kiwi jumped in the market following the release of the NZ employment report for Q3 that surpassed expectations and helped the pair complete three days of consecutive gains and the fourth out of the last five trading days. 

NZD/USD Levels to watch 

To the upside, resistance levels might be located at 0.6800, 0.6855 (July highs) and 0.6915/20. On the flip side, support could be seen at 0.6770 (US session low), 0.6745, 0.6710 (Nov 7 low) and 0.6690 (Nov 2 high).