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NZD/USD Falls After the RBNZ Statement

The Reserve Bank of New Zealand (RBNZ) met to vote on monetary policy. There was really not that much to make of it because the bank held the official cash rate (OCR) at 3.50%. 

The key points were that there was a slight downtick in inflation forecast that might move the next rate hike back a bit. It is currently projected to be at the start of Q2 (April), 2015. 

The other key thing is governor Graeme Wheeler's comments on the exchange rate of the kiwi. He noted that the NZD's level is "unjustified and unsustainable" and expected "depreciation", of the currency, especially in the environment of soft commodity prices. 

The market reacted with NZD-weakness across the board.

The NZD/USD dipped below 0.82, to a 7-month low. The prevailing trend was already bearish, and there is still room to the 2014-low at 0.8051. At this point a break above 0.8350 will be needed to introduce a bullish correction or significant consolidation outlook.

(NZD/USD 9/11 4H Chart)