The New Zealand dollar is the best performing major currency today. Reserve Bank of New Zealand decided to keep interest rates unchanged at today's meeting. Large Scale Asset Purchase programme was held unchanged at NZ$100 billion. The bank said that there is a need for prolonged monetary support amid uncertain economic outlook and that it will not remove stimulus unless it is sure that it has reached its goals on inflation and employment. RBNZ does not want to risk tightening policy when New Zealand economy may be heading for a double dip recession (Q4 2020 growth was negative and Q1 2021 growth is expected to be either flat or negative).
Taking a look at NZDUSD chart, we can see that the pair is testing a resistance zone at 0.71 marked with previous price reactions and the 38.2% retracement of an upward impulse launched at the end of September 2020. Breaking above this zone would pave the way towards the next resistance - 23.6% retracement at 0.7235.
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Source: xStation5
