3 Feb 2015
NZD/JPY crashes to 4-Month Lows on RBA rate cut
FXStreet (Mumbai) - NZD/JPY extended losses and smashed to fresh four month lows after the Reserve Bank of Australia (RBA) cut its main refinancing rate by 25 basis points to record lows.
Recovers from 84.07 levels
Currently, the NZD/JPY recovers from fresh four month lows posted at 84.07 levels immediately after the RBA’s rate cut announcement and now trades at 84.57, recording -1.50% loss on the day. The cross in NZD/JPY slumped as all the commodity-backed currencies fell after the surprise rate cut decision by the Australian Central bank. The losses were further exacerbated as the yen strengthened versus the USD as risk-off trades spurred.
Meanwhile, the pair may remain pressured as traders continue to the digest RBA’s actions and may turn their focus on tonight's dairy auction, which might undermine the currency further.
NZD/JPY Levels to consider
To the upside, the next resistance is located at 84.82 levels and above which it could extend gains to at 85.30 levels. To the downside immediate support might be located at 84.07 levels below that at 83.50 levels.
Recovers from 84.07 levels
Currently, the NZD/JPY recovers from fresh four month lows posted at 84.07 levels immediately after the RBA’s rate cut announcement and now trades at 84.57, recording -1.50% loss on the day. The cross in NZD/JPY slumped as all the commodity-backed currencies fell after the surprise rate cut decision by the Australian Central bank. The losses were further exacerbated as the yen strengthened versus the USD as risk-off trades spurred.
Meanwhile, the pair may remain pressured as traders continue to the digest RBA’s actions and may turn their focus on tonight's dairy auction, which might undermine the currency further.
NZD/JPY Levels to consider
To the upside, the next resistance is located at 84.82 levels and above which it could extend gains to at 85.30 levels. To the downside immediate support might be located at 84.07 levels below that at 83.50 levels.