NZD/USD reverses part of Wednesday’s gain

The NZD/USD pair came under some selling pressure on Thursday after RBNZ announcement and reversed a major part of its overnight gains posted in the aftermath of Fed inaction.

Currently trading around 0.7330 region, the pair initially jumped to hit a fresh 2-week high but failed to build on to the momentum as RBNZ's rate statement fueled speculations of a possible further interest-rate cut at its meeting in November. In today's meeting, the central bank left the official cash rate (OCR) unchanged at 2.0%, as was widely expected.

On Wednesday, the pair erased early losses and move higher for the third consecutive day after the Fed decided to leave interest rates unchanged at its September meeting and exerted fresh selling pressure on the already weaker greenback.

On the economic data front, weekly jobless claims, existing home sales data and leading indicator from the US are due for release later during NY trading session on Thursday.

Technical levels to watch

From current levels, 0.7315 level is likely to protect immediate downside below which the pair is likely to break below 0.7300 handle and head back towards testing an important horizontal support near 0.7250 area.

On the flip side, 0.7355-60 area now seems to have emerged as immediate resistance, which if conquered should boost the pair immediately towards 0.7395-0.7400 resistance before eventually lifting the pair to its next major resistance near 0.7450 region.