NZD/USD (current price: 0.7346)
The New Zealand Dollar was lagging other risk-on currencies yesterday following the FED statement as traders awaited the rate decision of the New Zealand central bank. The RBNZ also left its benchmark rate unchanged at 2.0%, in line with the policies of the other major banks recently. The pair is trading close to the previous high near 0.7350, after establishing a trend line support with its previous low near 0.7250. The pair could be ready for another leg up, although China, the country’s most important market is still showing weakness.
Our assessment: The Kiwi is holding own to yesterday’s gains after the RBNZ decision, as the positive change in global sentiment still supports the currency, despite some weak fundamentals.
