The Reserve Bank of New Zealand concluded its monetary policy decision during the 2/8 session. Members of the central bank voted to hold the official cash rate at 1.75%. This comes after 3 rate cuts in 2016 and 4 rate cuts in 2015.(courtesy of tradingeconomics.com)Official RBNZ Monetary Policy Statement (pdf) *40 pagesWhile it sounds like the bank is not looking at a rate cut going forward, it did prolong its expectation of the current policy. According to nzherald.co.nz, "The Reserve Bank trimmed its track for inflation, with a return to 2 per cent on an annual basis not expected until mid-2019. The bank projects inflation to be about 1.5 per cent through most of this year, softening to 1.3 per cent at the start of 2018 before creeping up to 2 per cent by the middle of 2019, later than what was projected in the November forecast."It should also be noted that RBNZ president Graeme Wheeler is going to step down when his term ends in September. According to bloomberg.com, "Wheeler today ended weeks of speculation over his future, saying it was never his intention to seek a second term as governor. Appointed in 2012, his tenure has been marked by a battle to revive inflation even as New Zealand’s economy outperformed its developed peers and the housing market boomed. While inflation is finally showing signs of accelerating toward 2 percent, the midpoint of the RBNZ’s target range, economists don’t expect policy makers to lift borrowing costs from a record low any time soon." (bloomberg.com)The market reacted to the RBNZ's dovish tone by selling the New Zealand Dollar (NZD). NZD/USD Chart 4H 2/9(click to enlarge)Against the Bullish Trend:- So far in 2017, NZD/USD has been bullish as we can see in the 4H chart.- We can see that price action has stalled and become more choppy since late January. There is an extended bearish divergence between price and the RSI.- Today's price action might keep the NZD/USD in consolidation, and even pressure it into a bearish correction.- However, because of the prevailing uptrend, we still have to monitor the 0.72-0.7220 area for support.- This area involves a rising support and a support/resistance pivot. - A break below 0.72, with the RSI falling to 30 would introduce further bearish correction.- A hold above 0.7220 suggests a more neutral/sideways consolidation.