The New Zealand dollar weakened against the U.S dollar after the Reserve Bank of New Zealand issued a statement on Thursday reiterating that the current level of the currency is unjustified and unsustainable and warned of the prospect of a large downward adjustment. “Past experience suggests that when the New Zealand dollar begins depreciating from an unjustified and unsustainable level, the ultimate adjustment can be large,” Governor Graeme Wheeler said in a statement. He added that the RBNZ would welcome any such adjustment.
Meanwhile, the U.S dollar firmed against most major currencies after Dallas Federal Reserve President Richard Fisher said U.S. central bank may start raising benchmark interest rates around the spring of 2015, earlier than many market expectations, which boosted the greenback.
Intraday bias remains on the downside as 21 and 55 EMA trend indicators are crossed downward in the 1 hour, 4 hours and Daily time-frame signalling a continuation of strong bearish trend in the pair. SSRC, Stochastic, RSI and MACD Oscillator indicators are showing bearish momentum is still intact, so am expecting further decline to 0.79000 or lower in the short term picture as the week’s trading session ends tomorrow.