August 10, 2017 8:31:53 AM EST
By NewsMovesMarketsForex Staff Writer
The New Zealand dollar remains under pressure and is taking a real beating this morning. The GreenBack continues to displaying solid strength against the Kiwi. The NZD sold off 103 Pips in the overnight Forex trading markets on August 10th 2017 selling down gradually from a high of 7354 to the .7250 level.
The Bears took firm control of the NZD hours later after the RBNZ cash rate report announcement on August 10th 2017.
- The New Zealand dollar Index is currently trading this morning at 76.61 down (-0.71%) August 10th 2017 7:49 AM EST.
- The U. S. Dollar is showing strength and holding its own currently trading at 93.68 up +.20% August 10th 2017 7:49 AM EST.
The Kiwi sold off on consensus market news coming from the Republic Bank of New Zealand. Governor Wheeler held firm to a neutral policy on August 10th 2017 leaving the Official Cash Rate (OCR) unchanged at 1.75 percent.
Statement by Reserve Bank Governor Graeme Wheeler:
“Global economic growth has become more broad-based in recent quarters.”…
“GDP in the March quarter was lower than expected, adding to the softening in growth observed at the end of 2016. Growth is expected to improve going forward, supported by accommodative monetary policy, strong population growth, an elevated terms of trade, and the fiscal stimulus outlined in Budget 2017’…
The outlook for tradables inflation remains weak. Non-tradables inflation remains moderate but is expected to increase gradually as capacity pressure increases, bringing headline inflation to the midpoint of the target range over the medium term. Longer-term inflation expectations remain well anchored at around 2 percent..
Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to adjust accordingly.”
The current indra day sentiment remains bearish the NZD/USD is currently trading at .7267 at 8:28AM EST. On the Daily chart the RSI is at 37.84. The next possible support levels are S1 .07211, S2 .07190 S3 .07165.