NZD/USD Levels to Watch as the RBNZ is Developing Large-Scale Purchases of property

The New Zealand Dollar, ” Talking Points

NZD/USD extends the decline from earlier this month as the Reserve Bank of New Zealand (RBNZ) is expanding its. The Large-Scale Asset Purchase (LSAP) program, and the exchange rate may continue to give back the advance from the April low (0.5843) in the middle of the failure of the attempt to push above the former support zone around 0.6170 (50% extension) to 0.6230 (38.2% expansion).

NZD/USD Levels to Watch as the RBNZ is Developing Large-Scale Purchases of property

The NZD/USD carves a series of lower-highs-and-lows-after-failing-to-test of the April high (0.6176), and the new zealand Dollar may continue to weaken against its U.S. counterpart as the RBNZ delivers a dovish forward-guidance for monetary policy.

Source: RBNZ

The RBNZ has kept the official cash rate (OCR) at a record-low 0.25%, while the enlargement of the LSAP program to new zealandThe $ 60 billion new zealand$ 33 billionand it seems as if I must Adrian Orr and Co. will continue to take unprecedented steps to support the new zealand economy as the “Monetary Policy committee is ready to use additional monetary policy tools if and when necessary, as well as the reduction of the OCR more.”

It remains to be seen whether the RBNZ will deploy more unconventional measures in the coming months as the mthe embers of note that the main thing necessary to support the economy, it is the fiscal stimulus,” and it seems that the central bank is in no hurry to implement a a negative interest rate policy (IT) as Governor Orr and Co. insist that “in addition to OCR cuts at this stage would not be efficient.”

In turn, the RBNZ may use its balance sheet throughout 2020 as the “mthe embers are agreed that an extension of the LSAP program, the most effective way to offer new stimulus measures at this time” but speculation for an IT in New Zealand may continue to drag on the NZD/USD, as much as President Of The Federal Reserve Jerome Powell tames paris, negative) of AMERICAN interest rates.

That said, the NZD/USD stands at risk of give back the advance from the April low (0.5843) the following the failure of the attempt to push above the former support zone around 0.6170 (50% extension) to 0.6230 (38.2% expansion).

Sign up and join DailyFX Currency Strategist David Song LIVE an opportunity to discuss the potential trade set-ups.

NZD/USD-Rate-Daily Chart

Source: The Negotiation Of The View

• Keep in mind, the NZD/USD has not managed to retain the range from the second half of 2019, as the decline earlier this year, he produced a break of the October low (0.6204), with a “death cross”, which takes shape in March that the 50-Day SMA (0.6012) crosses below the 200-Day SMA (0.6329).
• The negative slope in both the 50-Day SMA and the 200-Day SMA, and offer a bearish outlook for the NZD/USD, and the advance of the low level of the year (0.5469) seems to slow down in front of the former support zone around 0.6170 (50% extension) to 0.6230 (38.2% expansion) as both the price and the Relative Strength Index (RSI), the snap of the upward trend of the formations from This.
• The NZD/USD carves a series of lower highs and lows in the wake of the failed attempt to test the April high (0.6176), with a break/close below the 0.6000 (100%) for 0.6010 (161.8% expansion), the region, bringing 0.5880 (100% real) the area on the radar.
• Need a break of the April low (0.5843) to open the Fibonacci overlap around 0.5740 (78.6% retracement) to 0.5790 (61.8% retracement), with the next area of interest should come in around 0.5640 (261.8% expansion).

— Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong