The NZUDUSD has moved higher post the initial statements from the RBNZ.
The NZDUSD fell below the 100 hour MA in the hour prior to the decision (see blue line in the chart below). However,that trend was quickly reversed back higher in the first few minutes after the announcement.
The RBNZ maintains expectations for strong growth. They expect to have a “more gradual increase in interest rates”. They continue to expect a significant drop in the exchange rate given the fall in commodity prices.
The price of the NZDUSD is toward the middle of the trading range.
From a technical perspective, the price has moved above the 200 hour MA (green line in the chart above) at 0.7753, and the 50% of the move down from the November highs at 0.77906. The 0.7990 is close support now on a retracement. More patient buyers will likely come in against the 0.7765 low from November 24 and the 200 hour MA level (at 0.7753). A move below the 0.7753 would likely lead to further selling (i.e. stops). On the topside, the 0.7858 level is the topside trend line connecting the November highs. (see chart above). This level should provide a profit taking level on the first look at least.
Looking at the daily chart, the pair moved to the middle of the trading range defined by a low and high trend line. The upper extreme comes in a 0.7925. The lower line comes in at 0.7623 today.
The price of the NZDUSD is toward the middle of the trading range.