Foreign exchange - NZD/USD larger regardless of RBNZ price minimize

Kiwi gains ground vs. greenback after RBNZ policy statement

Investing.com – The New Zealand dollar was higher against its U.S. counterpart on Thursday, after the Reserve Bank of New Zealand lowered interest rates in line with expectations as the bank also signaled that it may be the bank’s last rate cut for the time being.

hit 0.6782 during late Asian trade, the pair’s highest since December 4; the pair subsequently consolidated at 0.6747, gaining 0.40%.

The pair was likely to find support at 0.6632, the low of December 4 and resistance at 0.6790, the high of December 4 and a one-month peak.

In a widely expected move, by 0.25% from 2.75% to 2.50%.

Commenting on the decision, RBNZ Governor Graeme Wheeler said that such a level should be low enough to meet the central bank’s inflation target, but that it remains prepared to lower rates again if necessary.

Meanwhile, sentiment on the greenback remained fragile as investors became more and more cautious ahead of the Federal Reserve’s highly-anticipated policy meeting next week.

The U.S. dollar had rallied to 11-/12 year highs against other major currencies earlier in the week after Friday’s strong U.S. employment data added to expectations that the Fed will hike interest rates for the first time since 2006.

The kiwi was also higher against the euro, with declining 0.74% to 1.6288.

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Foreign exchange - NZD/USD larger regardless of RBNZ price minimize