NZDUSD Rises On RBNZ Official Cash Rate Hold
- NZD RBNZ leaves cash rate unchanged.
- Hawkish RBNZ Governor Wheeler strengthens New Zealand economic outlook.
- NZDUSD charges to 0.7821 before finding resistance.
The Reserve Bank of New Zealand left its official cash rate unchanged at 3.50% in line with analyst expectations. The RBNZ has reiterated its earlier sentiment that the current Kiwi exchange rate is unjustified and unsustatinable. They expect a broadbased devaluation in the Kiwi across the board. Non-Tradeable inflation has remained subdued and has left the RBNZ expecting a rate rise “at a later stage.”
A Hawkish RBNZ Governor Wheeler stated that the New Zealand Economy is expected to grow faster than capacity during the next two years. He believes that fallilng Oil prices are beneficial and expected to boost growth expectations. Governor Wheeler did not comment on the effects of falling dairy prices, which are a staple in the Kiwi economy.
NZDUSD 1-minute Chart: December 10th, 2014 Intraday
Charts Created using Marketscope – prepared by Tyler Amend
NZDUSD charged to a weekly high of 0.7821 powered by the Reserve Bank of New Zealand’s decision to hold the Official cash rate steady at 3.50%. The pair initially paused and traded off 0.7803 before a hawkish RBNZ Governor Wheeler extended the rally to the new weekly high. The pair is currently trading around 0.7797 at the time of this report.
--- Written by Tyler Amend, DailyFX Research
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