The NZD/USD stumbled lower in the past two days as the Reserve Bank of New Zealand was expected to raise their interest rate by another 0.50% earlier this morning. Intriguingly while the NZD/USD currency pair is trading within sight of short term lower values, the technical trend has actually incrementally ticked upwards the past twelve hours. The upwards movement started to occur before the central bank actually raised their borrowing costs.
The interest rate hike from New Zealand’s central bank was widely anticipated and now that result is official, it appears the NZD/USD can be expected to potentially retrace higher ratios it has recently seen which were higher. On the 12th of August the NZD/USD was trading near the 0.64650 mark, this before it started to tumble as the weekend began. Yesterday saw a low of approximately 0.63180. Early morning volatility was certainly on display earlier today, but the fireworks may become less pervasive in the coming hours.