NZD/USD Falls Near 0.5820 on RBNZ’s Dovish Outlook
The NZD/USD currency pair dropped to around 0.5820, its weakest level since April. The fall came after the Reserve Bank of New Zealand (RBNZ) cut its interest rate by 25 basis points to 3.00%, the lowest level in three years. The central bank also signaled that more cuts could come if inflation continues to ease.
This dovish stance pushed the New Zealand dollar lower in forex trading, while the U.S. dollar stayed strong. Expectations that the Federal Reserve will not rush into major rate cuts added extra support to the greenback.
From a technical analysis view, NZD/USD slipped below the 200-day simple moving average (SMA), which is seen as a bearish sign. The Relative Strength Index (RSI) is close to oversold levels, meaning the pair might pause before moving lower again.
If the pair tries to recover, it could face resistance near 0.5835–0.5880 and then 0.5900. On the downside, if it breaks below 0.5800, the next support levels are around 0.5760 and possibly 0.5700–0.5675.
Impact:
The NZD/USD pair could stay under pressure if the RBNZ continues with rate cuts. Any short recovery might face strong resistance near the 200-day SMA.