NZD/USD bid post RBNZ

Currently, NZD/USD is trading at 0.7339, up 0.04% on the day, having posted a daily high at 0.7373 and low at 0.7339.

NZD/USD was offered and then bid to aforementioned highs on the RBNZ but very quickly gave back the gains.  RBNZ left the official cash rate unchanged at 1.75% and repeated that monetary policy will remain accommodative for a considerable period. 

RBNZ keeps rates unchanged at 1.75%

The statement and OCR outlook was not quite as dovish as expected but the RBNZ noted that numerous uncertainties remain; Policy may need to adjust accordingly. The RBNZ also forecasted that headline inflation will likely decline in coming quarters with house price inflation that continues to moderate.

• RBNZ Lowers 4Q 2019 On-Year CPI Track to 2.0% From 2.1% In May  
• RBNZ Lowers 1Q 2020 On-Year CPI Track to 2.0% From 2.1% In May  
• RBNZ Lowers 1Q 2018 On-Year CPI Track to 0.7% From 1.1% In May

There was some jawboning of the currency as well and reiterated what Kent said yesterday, that "NZD has risen partly in response to weaker us dollar." We now await Governor Wheeler's news conference at 2200GMT ahead of him speaking again at 0110GMT in Parliament.

NZD/USD levels

Supports are 0.7300, 0.7280, (11th July high), 0.7205/06 June 22/21 lows; 0.7186 June 15 low; 0.7150 June 5 high; 0.7127 June 6 low and 0.7100.  On the flip side, 0.7370 (recent high) remains the first resistance. 0.7420/25 ahead of the key 0.7440 and 0.7480 thereafter comes as the next near-term resistance areas. 0.7520/25 double top highs are ahead of the 21st July high at 0.7557. In a continuation, 0.7744 were the April 2015 highs ahead of the opening highs for that year at 0.7889.