The Asian session today (Wednesday) saw the New Zealand dollar soar to strengthen its value following the decision of the New Zealand central bank policy meeting.
The Reserve Bank of New Zealand (RBNZ) still maintains the interest rate at 0.25% after previously rumored negative interest rates are under consideration.
According to Governor Adrian Orr, the interest rate will remain at the lowest level of 0.25% until next year. He also noted that economic activity remained resilient in the face of the pandemic crisis, better than projected.
In addition, the RBNZ has announced a new additional stimulus (FLP) worth NZ $ 28 billion which will begin this December.
Overall, the hawkish central bank policy sentiment has been a factor in supporting the Kiwi trade boom in the market.
On the price chart for the NZD / USD pair, the price has shown a move above the 0.68300 level after testing the Moving Average 50 (MA50) support level on the 1 hour price movement.
The increase shown has reached an altitude of around 0.69000 as of 11.30 am (Malaysian time) with still strong momentum.
The increase to the altitude has also recorded the latest 20-month high, since March 2019.
The continued increase is seen to test the price resistance level in March 2019 at 0.69300. The expected increase will test the 0.70000 level.
However, if the price returns to a possible decline with the re-strengthening US dollar which pressures the price, the RBS zone (resistance become support) at 0.67000 will be the price-tested support level.
