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23 Jan 2015
NZD/JPY trades below 200-DMA
FXStreet (Mumbai) - The NZD/JPY pair fell below 200-DMA located at 88.78 levels, on growing speculation of interest rate cut in New Zealand after the Bank of Canada surprised markets by reducing interest rates earlier this week.
The pair currently trades 0.31% lower at 88.65 levels, compared to the previous session’s close at 88.91 levels. The Kiwi, along with other commodity currencies like AUD has come under pressure after the Bank of Canada (BOC) unexpectedly cut interest rates earlier this week in order to counter the effect of weak crude prices. Moreover, the BOC’s move triggered speculation that interest rates would be cut in other major commodity exporters as well. Furthermore, the Kiwi has also been hit by falling inflation expectations.
NZD/JPY Technical Levels
The immediate support is located at 88.46, under which the pair could test 88.00 levels. Meanwhile, resistance is seen at 88.78 (200-DMA) and 89.14 levels.
The pair currently trades 0.31% lower at 88.65 levels, compared to the previous session’s close at 88.91 levels. The Kiwi, along with other commodity currencies like AUD has come under pressure after the Bank of Canada (BOC) unexpectedly cut interest rates earlier this week in order to counter the effect of weak crude prices. Moreover, the BOC’s move triggered speculation that interest rates would be cut in other major commodity exporters as well. Furthermore, the Kiwi has also been hit by falling inflation expectations.
NZD/JPY Technical Levels
The immediate support is located at 88.46, under which the pair could test 88.00 levels. Meanwhile, resistance is seen at 88.78 (200-DMA) and 89.14 levels.