Post RBNZ Analysis

The RBNZ announced its decision to keep interest rates on hold at 5.50%, keeping with market expectation.

In the accompanying statement, the RBNZ indicated that rates could remain restrictive in the long term as inflation rate continues to be "too high". This has also led to an increased likelihood for another rate hike to come from the RBNZ.

Following the release of the decision, the NZDUSD rose from the 0.5940 price level and continued to climb higher toward the resistance level of 0.5990.

This move higher was supported by the weakening of the DXY during the Asia session.

Further weakness in the DXY could drive the NZDUSD higher, with the bearish trendline and 38.2% Fib retracement level likely to provide resistance, before a resumption of the downtrend.