NZD/USD is clearish bearish below DMA’s on RBNZ

By FXStreet FXStreet (Guatemala) – NZD/USD has made a recovery post the dovish RBNZ rate decision where the Central Bank left rates on hold at 2.50%.

However, the RBNZ’s clear bias towards another rate cut sparked a steep fall in the kiwi and the recovery has far to go and struggles at the 100 sma on the 4hr chart at 0.6500.

Analysts at TD Securities explained that the RBNZ shifted to an explicit easing bias stating “Some further policy easing may be required over the coming year to ensure that future average inflation settles near the middle of the target range” but stopped short of signalling a cut as early as March.”

“The RBNZ took the liberty to mention its core inflation rate for the first time, most likely the Bank’s effort to signal that it will not be pressured to cut rates on “zero” headline inflation alone. That said, it did acknowledge the risks and most of them are point to further easing – Global growth, particularly China, dairy prices, net immigration and the housing market.”

Fonterra cuts milk price forecast, says global conditions challenging

It was a busy day for the kiwi, as prior to the RBNZ, Fonterra reduced …read more

Source:: FX Street