Forex: NZD/USD eases below 0.8450

FXstreet.com (Barcelona) - NZD/USD has retraced all the way from the fresh session top at 0.8463 following RBNZ rate statement to where it was before the release, and now trades at 0.8430 last. The pair has also eased a bit after Australia CPI figures came in lower than expected, though it is still holding above session lows at 0.8411.

"All of the key points from the March statement were repeated,” FX strategist at Westpac Sean Callow noted, “but there was a notable omission from the final policy paragraph – the sentence 'There are both upside and downside risks to this outlook' was omitted. This was interpreted as reducing the chance of a rate cut," The analyst concludes. NZD/USD is barely in the positive for the week so far, having traded all this time since it opened Monday inside the 0.8360/0.8460 range.

Immediate support to the downside for NZD/USD lies at Monday's lows 0.8395, followed by yesterday's 3-week lows at 0.8360, and Feb 07 lows at 0.8289. To the upside, closest resistance shows at recent session and Monday's high at 0.8462, followed by Friday's highs at 0.8491, and April 17 highs at 0.8509.