The New Zealand dollar showed a surge in the Asian session on Wednesday morning following the announcement of the results of a monetary policy meeting by the New Zealand central bank.
Examining the results of the meeting, the Reserve Bank of New Zealand (RBNZ) still maintained interest rates unchanged as expected by the market.
The meeting committee agreed to uphold current policies seen to support New Zealand's economic recovery. The country is also seen as one of the fastest in controlling the Covid-19 pandemic crisis.
Investors' confidence in New Zealand's economic prospects in the future will continue to support the strengthening of the Kiwi currency in the market.
On the price chart for the NZD / USD pair, the price moved above the level of 0.74000 earlier this week with the level of 0.73400 being the price resistance.
However, in the Asian session this morning, the price tested the Moving Average 50 (MA50) support level over a 1-hour time frame before continuing to rise above the 0.73400 resistance following the decision of the RBNZ meeting.
After reaching the latest high of around 0.73800, the price started to slow again towards the opening of the European market session. The level is also the highest achieved since April 2018.
The price increase is expected to continue in the next sessions towards the level of 0.74000 and may even exceed that level to continue to record the latest highs.
The price decline is seen to be supported at the level of 0.73400 which forms the RBS zone (resistance become support) before a lower drop below MA50 will give an early signal of a bearish trend change.
Next, the price will return to the RBS zone 0.72500 which was a resistance level in previous weeks.
