Markets are focused on the results of the New Zealand central bank meeting in the Asian session yesterday morning which is seen to affect Kiwi trading.
The Reserve Bank of New Zealand (RBNZ) kept its forecast of raising interest rates by 50 basis points to 4.75% for the first policy meeting of the year.
Investors assessed the statement issued by the central bank as still hawkish for the next monetary policy indication.
The New Zealand dollar showed an initial reaction by strengthening immediately after the announcement of the interest rate hike, but was seen not so well in the following trading sessions.
It can be observed the movement on the NZD/USD currency pair chart yesterday, the price hovering in the 0.62000 support zone has shown an increase around the 0.62450 level.
The price increase, however, did not cross the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the NZD/USD chart, indicating that the trend remains bearish.
The price failed to continue climbing higher but instead hovered 50 pips from the 0.62000 support level.
The re-strengthening factor of the US dollar also acted as a barrier to further gains, with the US dollar under pressure against the New Zealand dollar after the market examined the minutes of the FOMC meeting.
Continuing trading today (Thursday), the price made another increase to the 0.62500 level and crossed the MA50 barrier.
If this is an early sign of a bullish trend change, the price can jump higher after this with a target towards the 0.63000 zone.
Passing the zone will push the price towards the resistance zone at around 0.64000.
However, if the US dollar continues to dominate and pressure the price to fall lower, a drop below the support level of 0.62000 will push the price further down to the level of 0.61000.
