On the daily NZDUSD chart below, we can
see that the price today has spiked to the resistance at 0.6389. This was caused by
the RBNZ which decided for a surprising
50 bps hike instead of the expected 25 bps. This sent the kiwi higher across
the board and we may now see some consolidation or pullback before the next move.
In fact, as we can see from the
distance between the price and the blue short period moving
average, the move has overextended. The focus now will switch to today’s US ISM Services PMI and we may see the USD back in
charge if we get a big miss in the data and the market switches to the
recession trade.