NZDUSD makes fresh 2-week highs, trading 0.49% higher at 0.6263 continuing the rebound away from four-year lows. Kiwi is under pressure after RBA cut interest rates and investors increase bets that RBNZ will follow. RBNZ, in its last monetary policy committee, left interest rates unchanged at 1% as expected by markets. The central bank noted that the risks are to the downside amid trade tensions, geopolitical turbulence and low business confidence. On the macro data front New Zealand ANZ Commodity Price came in at 0%, below expectations of 0.4% in September.
NZDUSD trades close to daily highs as the pair breached yesterday the descending trendline which started back in July. A weak US dollar pressured by dismal manufacturing PMI helped NZD to move away from the recent lows. On the upside, immediate resistance stands 0.6331 today’s high, and then at 0,6348 the high from September 25th, the next target is the 50-day moving average at 0.6389. On the downside, immediate support stands at 0.6294 daily low and then at 0.6254 yesterday’s low, a convincing break below might force the pair down to 0.6169 the lows from June 2009. NZDUSD short term outlook is bearish, and a break below 2015 lows now looks possible. Patient traders are probably wait for a convincing rebound above the 0.6395 where the 50-day moving average crosses to enter long positions.Download our latest quarterly market outlookfor our longer-term trade ideas.
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