So the focus on the Asian session this morning (Wednesday), the Reserve Bank of New Zealand (RBNZ) policy meeting is seen to have a significant impact on the movement of the New Zealand dollar just now.
The market saw a 25 basis point hike in interest rates to 5.50% which was in line with forecasts, signaling that rates have reached their peak.
With this slower rate hike, the central bank is seen as ready to stop its previous policy tightening.
Although inflation still remains high at 6.7%, the RBNZ sees inflation continuing to decline with the level of interest rates that have been reached so far.
Judging the price action on the chart of the NZD/USD currency pair, a bearish pattern is clearly displayed in today's Asian session after prices have been flat since last week's trade.
Investors were prepared earlier on Tuesday yesterday when the price started to move below the Moving Average 50 (MA50) barrier level on the 1-hour charted time frame, signaling an early signal for bearish movement for the price.
The price hovering around 0.62500 at the beginning of the Asian session this morning finally plunged after the reaction to the RBNZ meeting results.
The drop in price has broken the support zone at 0.62000 and by resuming trading at the beginning of the European session, the price has dropped to around 0.61400.
A further decline would be expected to head towards the concentration zone at 0.61000-0.60600.
Passing the following zone will push the price to record the latest 6-month low.
However, if the price goes up again, the 0.62000 zone will be tested again and potentially become the latest resistance for the price.
If successfully broken, the price will continue to rise higher to return to the resistance zone at 0.63000.
