RBNZ Orr:
- Inflation remains too high
- The committee remains weary of ongoing inflationary surprises
- Internalizing complex situation of subdued 3Q GDP, historic downgrades
- Neutral interest rate is now at 2.55%
Then NZDUSD has traded up to test the July 27 high at 0.6273 today. The high price today has reached 0.62718 just short of that level. A move above that level would open the door to more upside momentum.
Looking at the daily chart, the low price from last week based near the 50% and the 200-day MA near 0.6092. Holding support near those levels, provided a strong base to push off. The FOMC rate decision provided a catalyst to move higher. Since then the price has moved up around 190 pips (in 5 days).
This article was written by Greg Michalowski at www.forexlive.com. Source