RBNZ less dovish/more hawkish
The RBNZ kept rates unchanged and in the process said that they expect rates to remain unchanged for 2020. That was a bit surprising, and the NZDUSD shot higher.
Looking at the daily chart, the price has been able to extend above its 100 day moving average at 0.64658 area, but has stalled ahead of its 200 day moving average at 0.64966. The high price reached 0.6487.
The current price trades just above the 100 day moving average and intraday has traded above and below that moving average (see hourly chart below). Traders are trying to keep the bull run going (stay above the 100 day MA would help), but are running into the key daily moving average above.
Looking at the hourly chart below, the price has corrected to the 38.2% retracement of the move down from the January 16 high. That level comes in at 0.64874. A move above should solicit more buying toward the 200 day moving average.
On the downside the corrective low after the spike higher has seen buyers against a swing area in the 0.6449 – 53 area. That was a good level to hold after the sharp rise higher. Going forward if that area is broken (yellow area in the chart below) and the 200 hour moving average is also breached, it would have the buyers scratching their heads.
