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NZDUSD : Investors Cautious After RBNZ Statement

(NZDUSD : 4 Hour Chart)

NZDUSD finally declined below the key support at .8648 after the Reserve Bank of New Zealand again hiked the official cash rate for the fourth time in a row. Investors were expecting the same. RBNZ governor Graeme Wheeler raised the rate by 25 basis points to 3.5%. The decline in the pair basically came after the central bank mentioned the potential risk of a significant fall in New Zealand Dollar. He said the current level of the currency is unjustified and is not going to sustain for longer and also signaled a pause in the monetary policy tightening.

On the 4 hour chart, the pair will be testing the next nearest support at .8573. 

(NZDUSD : Daily Chart)

Whereas on the daily chart the pair seems like trading within a rising wedge which gives a bearish signal and we might see the pair extending losses. So the pair might decline below the rising support trend line.

Investors now would be looking for the US jobless claims (8:30 AM EDT), Manufacturing PMI ( 9:45 AM EDT)and New Home Sales data (10:00 AM EDT).Let's see what US data brings to the pair.