NZ FinMin reference to rate hikes ignored by Kiwi traders

FXStreet (Bali) - Despite comments from New Zealand finance minister English crossing the wires (speaking to the business community in Auckland) saying interest rate rises are inevitable, the NZD/USD is barely changed.

The muted price action in the NZD/USD reflects what has been clear for quite some time, that is, the market appears to have fully 'priced in' most of the immediate rate hike projections in New Zealand. Risk appears to be even skewed slightly to the downside should further delays to deliver the cuts occur.

Jim Langlands, Founder at FXCharts, notes: "A neutral stance is best, although the 4 hour charts retain a mildly positive bias and we could yet see a run towards the recent 0.8392 high, beyond which could eventually bring about a retest of the 14 Jan high at 0.8432. The downside will now find buyers at 0.8320 (200 HMA) and then at 0.8300 (100 HMA) ahead of yesterday’s low at 0.8260."