The New Zealand dollar weakened despite a 50bp hike by the RBNZ as risk sentiment fades. The pair hit resistance at 0.6460 and has given up most of its recent gains. A drop below 0.6300 at the base of last week’s bullish breakout shows a lack of commitment from the long side, putting a dent to the market’s optimism by invalidating the rebound. August’s lows near 0.6210 is the bulls’ last stronghold and its breach would send the kiwi to 0.6100. 0.6300 is the first hurdle as the RSI recovers to the neutrality area.
