The NZDUSD pair rose during Asian session after the Reserve Bank of New Zealand raised its policy rate by 50 bps to 3% in a widely expected and reiterated statement that it will continue normalizing rates, saying that the OCR will peak at 4.1% in March 2023. However, the upward move turned out to be short-lived as hawkish FED and weak economic data reignited fears of a global recession which puts pressure on risk-sensitive currencies. Pair will get a chance to move during today's FOMC minutes release. From a technical point of view, NZDUSD bounced off local resistance at 0.6430, which is marked by the upper limit of the 1:1 structure, previous price reactions and upper limit of the descending channel. During today' session the pair broke below 50 SMA (green line) and if current sentiment prevails support at 0.6245 may be at risk.
NZDUSD, D1 interval. Source: xStation5
