NZD/USD holds onto gains around 0.7250

NZD/USD is taking a breather, holding onto daily gains although off its 14-month high struck in the aftermath of the Reserve Bank of New Zealand decision to cut rates by 25bps, which was widely priced in.

NZD/USD reached a peak of 0.7338, last seen May 2015, but gave up more than 50% of its gains, and with the downside contained by 0.7227, the kiwi steadied around 0.7250 over the last hours. At time of writing, the pair is trading at 0.7249, still up 0.96% on the day.

NZD/USD technical levels

On the upside, if NZD/USD manages to break above 0.7338 (post-RBNZ high, Aug 11), next resistances are seen at 0.7394 (May 22 2015 high) and 0.7457 (100-month SMA). On the flip side, supports could be found at 0.7179/83 (Aug 11 low/10-day SMA), 0.7158 (Aug 10 low) and 0.7115 (50-day SMA).