NZD/USD Price Analysis: Eyes fresh monthly low below 0.6220 confluence on less hawkish RBNZ’s Orr

• NZD/USD remains on the back foot despite recent corrective bounce following comments from RBNZ Governor Orr.
• RBNZ’s Orr struggles to restore market’s confidence despite keeping peak rate unchanged, matching 0.25% rate hike expectations.
• Clear downside break of 200-SMA, one-month-old ascending trend line keeps Kiwi pair sellers hopeful.

NZD/USD remains on the back foot around a three-week low under 0.6200, close to 0.6180 by the press time, even as Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr tries to placate Kiwi bears early Wednesday.  That said, the quote dropped 150 pips after the RBNZ disappointed markets while keeping the peak rate unchanged, as well as matching the broad forecasts of increasing the Official Cash Rate (OCR) by 0.25%.

Also read: NZD/USD slumps below 0.6200 as RBNZ offers no hawkish surprise with 25 bps rate hike

RBNZ Governor Orr said that the latest data is satisfactory after a long battle (with inflation).

Also read: RBNZ’s Orr: Today was first time monetary policy committee went to vote for a decision

With the NZD/USD pair’s downside break of the 0.6220 key level on the dovish RBNZ bias, the sellers are likely to keep the reins amid bearish MACD signals. it’s worth noting that an upward-sloping trend line from late April joins 200-SMA to highlight 0.6220 as the key support-turned-resistance.

As a result, the Kiwi pair is well set for a fresh monthly low, currently around 0.6160. In doing so, the previous monthly bottom of around 0.6110 and the yearly trough near 0.6084 marked in March will be in the spotlight.

Alternatively, NZD/USD pair’s corrective bounce fails to push back the Kiwi buyers unless crossing the 0.6220 level.

Even so, a two-week-old descending resistance line, around 0.6305 by the press time, can challenge the NZD/USD bulls ahead of directing them to the monthly high of 0.6385.

NZD/USD: Four-hour chart

Trend: Further downside expected