NZD/USD: presser has so far justified a weaker Kiwi, eyes focussed below 0.6820 lows

Currently, NZD/USD is trading at 0.6832, down -1.60% on the day, having posted a daily high at 0.6945 and low at 0.6830.

Following a surprise dovish stance from the RBNZ today, the bird has fallen heavily and to levels not seen since June of last year. The RBNZ left rates on hold at 1.75%, concerned about global headwinds and how the level of inflation still does not warrant action. 

The price dropped over 120 pips within the 30 minutes stick between the volatility around the announcements and is now moving back towards the bottom of that range around 0.6920 during the presser where Wheeler and Assistant Governor Grant Spencer are taking questions. They both insist that they do not see inflation raping up anytime soon and that is the main reason why they are sticking to the status quo. 

• RBNZ's Wheeler: There is a lot of uncertainty around trade protectionism
• RBNZ's Assistant Gov Spencer: We are expecting to see lots of volatility in inflation numbers
• RBNZ's Wheeler: Lack of inflation pressure main reason for keeping neutral stance
• RBNZ's Wheeler: May be some increase in house price inflation "but nothing like we've seen in the past"
• RBNZ presser at 22hrs GMT: what to expect now - Kiwi to drop on more dovishness?

NZD/USD levels

The 0.6820 level is evidently the first support. Below 0.6700 we have the 0.6675 level as the 29th May 2016 high. On a break higher through the 0.69 handle, 0.6920/30 is the immediate resistance area still along with the 20-d sma at 0.6933 ahead of psychological 0.70 level. The 17th April highs of 0.7035 are next up ahead of 0.7060/70, being a further key resistance area through the 200-d ema (0.7047). The double bottom at 0.7130 as the mid-Feb lows could be a strong area of resistance.