NZD/USD is weaker as the RBNZ mulls over debt options
NZD/USD broke below its 200-hour MA (blue line) in late trading overnight before extending losses after RBNZ governor Orr said that the central bank is mulling over the possibility of direct debt monetisation and also a mention of negative rates.
That saw price fall below its 100-hour MA (red line) as well, creating a more bearish near-term bias. However, the downside move stalled at support from the 61.8 retracement level @ 0.5987 as buyers leaned on the level to regain back some momentum.
As price pivots around the 0.6000 handle currently, the key level to watch will be the 100-hour MA @ 0.6008. Break above that and the near-term bias turns more neutral once again.
However, sellers could use this level as an area to lean on to look at another possibility to test the 61.8 retracement level highlighted above.
That will be a key line in the sand for a downside move towards testing the support region around 0.5940-50 as well as the 16 April low @ 0.5922. If the latter gives way, there isn’t much in the way of a drop towards the 3 April low @ 0.5844 next.