Kiwi stays pressured in European morning trade

Read full post at forexlive.com

In
case
you
missed
the
decision
earlier:

RBNZ
leaves
it
cash
rate
on
hold
at
5.50%,
as
expected

The
pressure
is
staying
on
the
New
Zealand
dollar
today,
as
it
is
holding
at
the
lows
for
the
day
currently.
NZD/USD
is
down
0.8%
to
near
0.6070
and
is
testing
key
support
levels
once
more.

The
confluence
of
the
100
(red
line)
and
200-day
(blue
line)
moving
averages
at
0.6067-71
is
in
focus
now.
That
has
been
a
key
region
in
holding
the
pair
from
falling
further
at
the
end
of
June
and
the
start
of
July.

With
the
RBNZ
now
teeing
up
rate
cuts
in
their
upcoming
final
three
meetings
this
year,
the
kiwi
might
find
it
hard
to
get
off
the
floor
now.
That
especially
as
other
major
central
banks
are
not
sending
out
a
message
that
is
as
dovish.

The
RBA
might
even
have
to
pivot
to
rate
hikes
while
the
Fed
is
maintaining
the
narrative
that
there
is
no
need
to
rush
to
rate
cuts
just
yet.
On
the
latter,
they
are
still
hoping
for
inflation
to
come
down
further
and
are
not
going
to
act
unless
the
economy
starts
to
signal
a
recession.

So,
the
kiwi
is
facing
strong
headwinds
in
two
key
currency
pairs
in
AUD/NZD
and
NZD/USD.
That
until
the
big
picture
narrative
changes
course
again.
While
NZD/USD
is
threatening
a
further
technical
breakdown
above,
AUD/NZD
is
already
breaking
out
to
its
highest
since
October
2022.