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EURNZD Tests Support Trendline Following Hawkish RBNZ

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  • NZD is outpacing broader G10 FX on the more hawkish-than-expected RBNZ decision, at which the bank kept rates unchanged but signalled that policy would be kept much tighter, for much longer, and could even resume raising interest rates until inflation and inflation expectations are curtailed.
  • Forecasted cuts are now seen well into 2025, filtering through to NZDUSD registering a fresh 2-month high above 0.6150. Most recent Kiwi gains have been underpinned by the optimistic risk environment and the latest central bank rhetoric could pose further upside risks for the currency.
  • Price action on Wednesday has also seen EURNZD trade down to the lowest level since March 11, closely coinciding with a test of trendline support, a line drawn from the December 2022 lows.
  • Further supportive price action for equities and the accompanying hawkish RBNZ rhetoric could see momentum pick up through this level. A sustained breach of the uptrend line could target a move down to 1.7443, the February 23 low.
  • Initial resistance for the cross is at the 20-day EMA, intersecting today at 1.7866.

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  • NZD is outpacing broader G10 FX on the more hawkish-than-expected RBNZ decision, at which the bank kept rates unchanged but signalled that policy would be kept much tighter, for much longer, and could even resume raising interest rates until inflation and inflation expectations are curtailed.
  • Forecasted cuts are now seen well into 2025, filtering through to NZDUSD registering a fresh 2-month high above 0.6150. Most recent Kiwi gains have been underpinned by the optimistic risk environment and the latest central bank rhetoric could pose further upside risks for the currency.
  • Price action on Wednesday has also seen EURNZD trade down to the lowest level since March 11, closely coinciding with a test of trendline support, a line drawn from the December 2022 lows.
  • Further supportive price action for equities and the accompanying hawkish RBNZ rhetoric could see momentum pick up through this level. A sustained breach of the uptrend line could target a move down to 1.7443, the February 23 low.
  • Initial resistance for the cross is at the 20-day EMA, intersecting today at 1.7866.