NZD/USD mixed on RBNZ interest rate decision/statement

By FXStreet FXStreet (Guatemala) – NZD/USD has risen sharply on the back of the Reserve Bank New Zealand’s (RBNZ) interest rate decision. The RBNZ has cut the OCR to 2.5% from 2.75% and the bird dropped initially to 0.6571 and bounced to 0.6732 as the statement was being soaked up.

The RBNZ statement said that they will reduce rates further if warranted but expects them to remain steady, offering the bulls some lee-way. The key take away from the statement was that they expect to reach inflation goal at current rate settings.

NZD/USD was making a recovery from the 0.66 handle in an otherwise bearish trend from the highs of last week of 0.6663 with price that went on to score a low of 0.6594 on profit taking from the month’s highs. On previous bullish attempts, the 200 SMA on the 30 min sticks were capping recoveries and the 100 SMA on the houly in the same fashion before a few minutes to the release when price was bid through to 0.6662.

The RBNZ had been widely expected to cut interest rates by economists just a week before the US Federal Reserve meets and is expected to raise US interest rates for the …read more

Source:: FX Street