Market news
25.11.2021, 01:15

NZD/USD Price Analysis: Bulls taking back some airspace

  • NZD/USD bulls stepping in for a test of the bear's commitments following RBNZ flush out. 
  • The 50% mean reversion near 0.6920 is in focus.

As per the technical observations in the Reserve Bank of New Zealand yesterday, the bird fell out of the sky is what was regarded as a less hawkish outcome. 

''A dovish hike,'' it was stated, ''could consist of concern over covid contagion, geopolitical risks, the guidance of incremental 25bps hikes, contingent on various factors.'' 

it was the 25pbs incremental rate hike road map that really upset the bulls. 

RBNZ projections for the path ahead

  • Official cash rate at 0.94% in March 2022 (previously 0.86%).
  • This moves to 2.14% in December 2022 (vs the prior 1.62%).
  • Then 2.3% in March 2023 (prior 1.77%).
  • Then 2.61% in December 2024. 

On the technical side of things, 0.6950 was said to be a line in the sand in this regard and a break there was expected to open risk to a restest of the 0.6880s and then 0.68 the figure. 

We have seen 0.6880s already well and truly tested:

At this juncture, we may need to wait for next week and the market's full response to the uber hawkishness at the Federal Reserve following today's mooted response to the minutes. A correction could be in order at this juncture prior to a continuation to the downside:

The 50% mean reversion near 0.6920 is in focus.

© 2000-2021. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at

Live Chat E-mail
Choose your language / location