FxWirePro: Negative RBNZ News and Lower Oil Prices Weigh on the Kiwi, Good to Sell NZD/USD Rallies
- Kiwi bears retained control amid negative RBNZ news and lower oil prices.
- RBNZ conducted a probe last month on allegations that the surprise interest rate cut on March 10th was leaked ahead of its official release.
- Earlier today, the central bank confirmed the allegations, but said that there is “no evidence that the OCR leak gave rise to any financial market impact.”
- NZD/USD slumped 0.87% to 0.6840, weakness continues to persist as markets digest the RBNZ news.
- Broad based USD strength also adds to the bearish pressure on the pair, with the USD index up +0.16% around 95 handle.
- US CPI and jobless claims data due today ahead of a slew of China economic releases due for release on Friday will be watched for impact on the pair.
- Immediate resistance and support are located at 0.6824 0.6868 (5-DMA) and (4H cloud).
Recommendation: Good to sell rallies around 0.6850, SL: 0.69, TP: 0.6760/0.67
The material has been provided by InstaForex Company - www.instaforex.com