New Zealand dollar jumps to one-year high after RBNZ holds rates

NZD/USD climbs a almost cent

In the immediate aftermath of the RBNZ decision, the New Zealand dollar shot to 0.7115 from 0.7120, nearly a full cent.

The market and economists largely expected no change but a significant minority of economists and traders were positioned for a cut.

So far, there has been no follow through and NZD/USD has pared back the gains to 0.7070.

The level to watch is 0.7053. It was the May high and was resistance. Now it's support and a close above that level will be key for the short-term direction of the kiwi.

If it can hold, there is very little in the chart to stop NZD from a significant rally (+5 cents) from here.

What will be key for the next move is the press conference from RBNZ Governor Wheeler at 2300 GMT.