NZD/USD has daily losses after RBNZ’s Orr words

• NZD/USD falls over 1% as bullish momentum fades after favorable RBNZ outlook.
• The RBNZ’s Orr was tight-lipped after the decision but offered no new insights.
• The fact that the bank considered a 50bps cut earlier in the session saw the NZD lose interest.

In Wednesday’s session, the NZD/USD pair fell 1.30% just below 0.6000 after the Reserve Bank of New Zealand’s decision during the Asian session. Gov. Orr was on the floor entering Thursday’s Asian session, but offered no new information.

In the Asian session on Wednesday, the Reserve Bank of New Zealand (RBNZ) surprised markets by not only cutting interest rates by 25 basis points, but also revealing that a 50 basis point cut was seriously under consideration in account. The RBNZ explained that the economy had slowed more than anticipated and that the inflation assessment was largely based on expectations, which have already fallen back to the 1-3% target range.

NZD/USD Technical Analysis

The Relative Strength Index (RSI) is currently around 50, indicating that the market is in a neutral zone. The Moving Average Convergence Divergence (MACD) shows declining green bars, signaling a decline in bullish momentum. This suggests that selling pressure is building and a potential reversal could be on the horizon.

NZD/USD Daily Chart

On the daily chart, the NZD/USD pair faces immediate support at 0.6000. A break below this level could open the door for a deeper correction towards 0.5970 and 0.5930. On the upside, resistance lies at 0.6040 and 0.6090 at the 100- and 200-day SMAs.

In the short term, the NZD/USD pair is expected to remain under bearish pressure. Technical indicators suggest that the bears are gaining the upper hand and could push the pair lower in the coming sessions. Any fundamentals that could fuel comfortable bets on the RBNZ could trigger another downside level.