The kiwi is the big mover in FX as we look towards European trading today. That comes after the RBNZ left its OCR unchanged at 5.50% earlier here. The central bank affirmed that its current policy stance is restrictive enough, dashing hopes of a more hawkish twist. However, RBNZ governor Orr did note that perhaps rates might have to stay higher for longer though.
NZD/USD daily chart
As a result, NZD/USD is being hammered lower to around 0.6110 at the moment. The pair saw its upside break last week limited by the 50.0 Fib retracement level of the swing lower to start the year, seen near the 0.6200 mark. And with the latest shove lower, we’re settling back into the range since mid-January.
Of note, the drop today will start to draw in focus on the 100 (red line) and 200-day (blue line) moving averages at 0.6086 and 0.6075 respectively. Those will be critical levels to watch on the chart in keeping the pair supported for now.
A break below that will put the February lows near 0.6050 in focus before sellers question a further drop in the pair.