The RBNZ kept rates unchanged when they made their interest-rate decision in the Asian Pacific session. The price of the NZDUSD initially moved to the downside briefly before bouncing back higher. That move was short-lived however as the price and rotated lower into the US morning session. At the lows, the price tested its 200 day moving average near 0.6182.
Buyers leaned but it wasn’t until the CPI data in the US which sent the parent sharply to the upside, and to new highs. That momentum continued as dollar selling dominated trading today. In the process, the price of the NZDUSD. broke outside of ranges that have defined the pair over the last month or so trading.
What next?
The price that move toward a key swing area between 0.6303 and 0.6318. The high price has reached 0.63064. That area will become the barometer in the short term now. Move above is more bullish. Stay below could see a rotation back toward 0.6246 – 0.6252 area. If the buyers are to take control, staying above that area is the risk given the breakout to the upside today.
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