NZD jumps even though RBNZ maintained a dovish tone. Some analysts noted that the FLP could be enough to stimulate the economy as recovery remains on track. Additionally, if a vaccine becomes available early next year, RBNZ might not need to cut rates into negative territory. An RBA style cut to 0.10% might be enough for RBNZ in February.
NZD/USD took out 0.6797 resistance early this week to resume whole rebound from 0.5469 low. Next near term target is 61.8% projection of 0.5920 to 0.6797 from 0.6589 at 0.7131.
More importantly, NZD/USD is now sitting comfortably above 55 week EMA, indicating continuing medium term bullishness. The rise from 0.5469, be it a corrective move or the start of new trend, would target 0.7557 cluster resistance (61.8% retracement of 0.8840 to 0.5469 at 0.7552), in medium term.
