NZD/USD (current price: 0.6805)
The New Zealand Dollar got volatile in the evening, as we expected, following the crucial release by the local central bank. Traders were expecting a dovish announcement as a reaction to last week’s Australian rate cut, but the RBNZ slightly surprised the market when it didn’t hint on an imminent rate cut. Mr. Wheeler, the bank’s governor, told the press that ”the outlook for the global economy has deteriorated in recent months”, but the heightened risks didn’t warrant a move just yet.
Our assessment: The Kiwi might rebound more compared to the Dollar in the coming days, but the picture remains mixed following the break of the advancing trend-line last week.
