NZD/USD will be supported on dips despite comments from RBNZ Governor Bollard forex market overreacted to yesterday's "subtle" policy change, says ANZ Bank senior dealer Alex Sinton. Adds RBNZ clearly moved from easing bias 3 policy meetings ago to neutral in October and tightening bias yesterday. "He has bought forward the date in which he is talking about increasing the cash rate; he's trying to smooth effect of what he said yesterday by some of the comments this morning, but at the end of the day it is a clear signal they are leaning towards tightening, and sooner than at the last statement." Says in light of comments, NZD will struggle around overnight highs of 0.7318 but will be supported in run-in to year end. Says session range will be within 0.7272-0.7337 band; extensions likely toward next technical level of 0.7359 but not today. Pair last 0.7289 vs 0.7251 locally late yesterday.
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