The New Zealand dollar was fighting to hold above a five-month low on Thursday after the Reserve Bank of New Zealand (RBNZ) cut interest rates by an aggressive 50 basis points, though it signalled further easing was unlikely. The Australian dollar was slapped lower by a double hit from less-than-stellar domestic jobs figures and surprising weakness in trade data out of China, the country's biggest export market.
As a result, the Aussie backtracked to NZ$1.3641, from an early peak of NZ$1.3732. It also skidded on the US dollar to $1.0045, from an early $1.0100, violating chart support at $1.0050 and risking a test of parity. The New Zealand dollar was pinned at $0.7352, down from an early $0.7386 and just above an early five-month trough of $0.7332. That low came in a knee-jerk reaction to the RBNZ cutting its cash rate to 2.5 percent. The kiwi had solid support at $0.7330 with resistance at $0.7420, he added.
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