Kiwi remains under pressure on Wednesday and trades around 0.69098. The drop of kiwi can be related to the Reserve Bank of New Zealand (RBNZ) interest rate decision.

Central bank of New Zealand fails to surprise markets by announcing a widely anticipated 25 basis points (bps) of a rate hike for the second time.

RBNZ said further stimulus easing may be needed and the OCR may go above its neutral rate. “The Committee expected that the OCR would need to be progressively increased and, conditional on the economy evolving as expected, the OCR would likely need to be raised above its neutral rate,” the bank said in the minutes of the meeting.

Whereas before the cash rate decision, New Zealand’s covid battle favored the kiwi and it was trading upside.

New Zealand said on Wednesday that fully vaccinated foreign travellers will be able to enter the country from April 30, and it will ease its border curbs that have been in place since March last year.

The Covid – 19 Response Minister Chris Hipkins said at a news conference that “Fully vaccinated New Zealanders in Australia can travel to New Zealand without requiring quarantine from Jan.16 He further said “Fully Vaccinated New Zealanders and other eligible travellers from other countries can start travelling to New Zealand without quarantine from Feb 13.”

However, Traders are placing bearish bets on Kiwi after the interest rate decision, traders are now keen to watch RBNZ’s Orr and multiple top-tier US data for directing their bets further.

NZD/USD 4 Hour Chart:

Support: 0.6910 (S1), 0.6876 (S2), 0.6837 (S3).

Resistance: 0.6983 (R1), 0.7022 (R2), 0.7056 (R3).

In the current scenario, kiwi is trading downside on the RBNZ’s interest rate. We expect a bearish trend for NZD/USD.