RBNZ presser: NZD/USD below 200 sma on the 1hr sticks, no sign of FX intervention from Wheeler

Currently, NZD/USD is trading at 0.7264, up 0.10% on the day, having posted a daily high at 0.7284 and low at 0.7258.

NZD/USD has stablised while Wheeler's presser is underway. He has so far shown a very neutral stance in respect to rates given the amount of uncertainties in the global economy, including Brexit and Trump's protectionist stance that could implement tariffs on global trade, slowing the global economy down at a time when there is already a five-year low since the 80's of global trade. 

In respect to the bird, he said that it is seven percent higher since the RBNZ started cutting rates seven times last year so he said if the bird was 7% lower, that would be beneficial or export and aggregated growth prospects for the NZ economy. China, US and Brexit were the largest pending risks in the RBNZ's scope for now. He said that the market has got ahead of its self in respect to them needing to raise rates. In respect to intervention, Wheeler avoided how close they might be to it and answered by just telling us that they have a trafic light system and model that they use for such an action when necessary. 

NZD/USD levels

NZD/USD is now below the descending resistance and has moved lower through the ascending support line and the 200 sma on the 1hr stick 0.7292. 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."