Global macro overview for 09/02/2017:
The Reserve Bank of New Zealand had decided to leave the official interest rate unchanged at the level of 1.75%, as widely expected. In the statement issued after the decision, the RBNZ said: "Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain, particularly in respect of the international outlook, and policy may need to adjust accordingly", which is almost the same as the statement from November last year. The retention of the final sentence surprised markets with its dovish tone, which had expected that glimmer of an easing bias to be removed. In conclusion, the 2.0% interest rate expectation for the year 2017 just has been changed to more stable and sober anticipation of max. 1.8%.
Let's now take a look at the NZD/USD technical picture at the H1 time frame after the news was released. The market tanked significantly after the dovish statement and now it just bounced from the weekly pivot support at the level of 0.7191. It looks like the bulls want to test the technical resistance at the level of 0.7242 before the slide downwards will continue.
