The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Friday, increasing the price of NZDUSD to more than 0.6750 following some key economic releases. The technical bias shall remain bearish because of a lower low in the recent downside move.

NZD/USD Technical Analysis

As of this writing, the pair is being traded around 0.6776. On the upside, a hurdle can be noted near 0.7395, an immediate horizontal resistance level ahead of 0.7400, the psychological level and then 0.7478, the high of the last major upside rally as demonstrated in the given above chart.

On the downside, a support can be noted around 0.6708, an immediate trendline support ahead of 0.6700 the psychological number and then 0.6653, another key horizontal support as demonstrated in the given below chart. The technical bias shall remain bearish as long as the 0.7500 resistance area is intact.

RBNZ Interest Rate Decision

New Zealand’s central bank held interest rates at a record low but signaled it is prepared to cut them if needed as economic growth slows and inflation remains below target.

“The official cash rate will remain at 1.75 percent for now,” Reserve Bank Governor Adrian Orr said in a statement Thursday in Wellington. “However, we are well positioned to manage change in either direction — up or down — as necessary.”

In his previous statement in May, Orr said the OCR would remain at its current level “for some time to come.” Since then, economic growth has been weaker than the RBNZ expected and business confidence has slumped to a seven-month low. Those data add to signs that New Zealand’s inflation rate will remain below the midpoint of the 1-3 percent range Orr targets for a prolonged period.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.