NZD/USD: RBNZ unchanged by bone jawing kiwi lower, down -0.54% on the day

Currently, NZD/USD is trading at 0.7269, down -0.53% on the day, having posted a daily high at 0.7335 and low at 0.7257.

RBNZ was unchanged and in line with expectations. Before the event, there was a small risk of a tightening signal which would cause a rally towards 0.7400. However, the bank jaw-boned the bird lower saying that the kiwi is higher than sustainable for balanced growth and that is weighing on the bid - the fact that there are no hawkish signals, the bird is now trading below the 200 sma on the 1hr sticks again and the lowest for the first time since 3rd Feb. 

NZD/USD 1-3 month:  

Analysts at Westpac explained that the month ahead could see NZD/USD extending beyond 0.7500 (Sep high) if the US dollar continues to register disappointment in the Trump Administration’s policies. "Further ahead, though, the Fed’s tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD lower to 0.7000. Granted, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend."