NZD/USD stable after RBNZ announcement

The Kiwi was trading in a calm manner against the US Dollar prior to the RBNZ’s Rate Statement late on Wednesday.

The Kiwi spiked to a two-week high after the Bank’s official cash rate was left unchanged at 1.75%. This strong surge was supported by the RBNZ revising upwards its inflation targets, thus signalling to an earlier interest rate hike than previously expected.

From technical point of view, the rate entered a short-term movement sideways after the announcement, thus testing the upper line of the junior channel.

By and large, it is likely that the Kiwi does not change its position much during the following 24 hours and thus remain slightly below the monthly PP at 0.6983 until the upper boundary of the senior pattern is reached.

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