The New Zealand Dollar has dipped against the U.S. Dollar on Wednesday after an initial spike following the Reserve Bank of New Zealand’s decision to raise interest rates by 50 basis points to 1.50%. This move was widely expected by economists, with all 21 experts in a Reuters poll predicting a rate hike.
At 05:34 GMT, the NZD/USD is trading at .6824, a decrease of 0.39% from earlier levels. Market sentiment suggests concerns about potential aggressive rate hikes by the U.S. Federal Reserve, starting in May with a 50-basis point increase.
Technical analysis shows that the main trend for the NZD/USD is currently downwards, with key levels to watch for potential changes in trend. Resistance levels are identified at .6874 to .6955, with a minor pivot resistance at .6920. Support levels are at .6833 to .6785 in the short term, and .6764 to .6708 in the intermediate term.
The outlook for the NZD/USD on Wednesday will depend on how traders react to the 50% level at .6833. A sustained move below this level could indicate further downside momentum, with potential targets at .6785 to .6746 and .6729. On the other hand, a sustained move above .6833 could signal buying interest, with targets at .6874 and .6902.
For more information on today’s economic events, refer to our economic calendar.