Kiwi Charts Doji Candlestick, Offshore Impetus Fuels Volatility

The RBNZ's decision to raise its key policy rate by 50bp caused only minor perturbations in NZD/USD price action Wednesday, as the statement ticked most boxes when it comes to market expectations. A marginally deeper sense of concern about downside risks to the growth outlook applied light pressure to the kiwi, but its impact was soon overshadowed by offshore developments.

• As London traders got in, NZD/USD started creeping higher in line with broader greenback sales, only to take a nosedive upon the release of another above-forecast CPI reading out of the U.S. The pair then rebounded into the Tokyo fix, as Canada's central bank announced a full-point jumbo rate hike, with resultant USD/CAD sales facilitating the greenback's retreat.
• NZD/USD eased off in NY hours, charting a Doji candlestick come the end of play, as mood music remained cautious. Although the broader commodity complex firmed, European and U.S. equity benchmarks registered losses after volatile trading, providing a negative lead for the riskier segment of G10 FX bloc.
• NZD/USD last deals at $0.6129, little changed on the day. Downside technical focus falls on yesterday's low of $0.6081, a break here would open up the psychologically significant $0.6000 level. Bulls look for a move through Jul 8 high of $0.6207 before targeting Jul 4 high of $0.6252.
• Back in New Zealand, BNZ is the first of the "Big Four" banks to raise its variable home loan rate after the RBNZ's latest monetary policy review.
• New Zealand's BusinessNZ M'fing PMI will hit the wires on Friday. In the meantime, Australia's jobs market data will provide interest today.