FX.co ★ NZD/USD

The New Zealand Dollar (NZD) fell sharply against all major currency pairs on Wednesday, dropping more than 1.3% against the US Dollar (USD) after the Reserve Bank of New Zealand (RBNZ) announced its monetary policy decision. NZD/USD is trading around 0.5610, having touched a two-week low of 0.5584, and bears are eyeing the 18-month low at 0.5564. The RBNZ kept its Official Cash Rate (OCR) at 2.75%, disappointing investors who had bet on a 0.25% rate hike. The NZD slumped sharply after the decision but then recovered from some losses after hints from the Governor, Anna Breman, that more monetary tightening will be seen in December. The spotlight has now shifted to the US Federal Reserve, which is scheduled to announce its interest rate decision at 18:00 GMT. Expectations are high that the Fed will keep interest rates unchanged, while markets will watch Warsh’s statement at the press conference for further hints on future rate hikes. The NZD/USD currency pair is trading at 0.5611, maintaining its bearish short-term outlook as it stays below the previously supported level of 0.5700. Technical indicators on the daily chart send mixed signals: the Relative Strength Index (14) is below 40, having exited sold territory, while the RSI remains. The Moving Average Convergence Divergence (MACD) remains above the zero line, indicating only modest upward attempts in a constrained market environment. Bears are watching the October 14 low at 0.8564. Below it, the 127.2% Fibonacci extension of the June-August recovery, near 0.5530, could offer support before the next key low at 0.5485 in April 2026. As resistance, 0.5700 has blocked the path to the September 18 high of 0.5787 and the support levels between 0.5800 and 0.5820 in mid-August and early September over the past seven days.