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Forex - New Zealand Dollar Falls After RBNZ Keeps Interest Rates at Record Low

The New Zealand Dollar fell on Thursday

Investing.com – The New Zealand Dollar fell on Thursday after the Reserve Bank of New Zealand said it expected to keep rates at record low of 1.75% for another two years, as the outlook for the country’s economy remained weak.

The pair fell 0.82% to 0.6679 by 1:13AM ET (05:13 GMT). Central Bank governor Adrian Orr said on Thursday in Washington that he is open to a rate cut if needed.

“We expect to keep the OCR at this level through 2019 and into 2020, longer than we projected in our May statement,” Orr said. “The direction of our next OCR move could be up or down.”

In addition, the central bank trimmed its forecast for economic growth in 2018 as data showed business confidence fell, while housing markets also cooled.

Risks to New Zealand exports also increased amid global trade tensions, RBNZ noted.

Meanwhile, The rose 0.2% against the dollar on Thursday. An article by CNBC said the recent weakness in the Chinese currency is creating challenging headwinds for Beijing’s push to promote its currency globally.

The yuan was under pressure since July amid an , and analysts now believe its push to become a global currency is likely to suffer a setback.

“Renminbi internationalization could be slowing down temporarily in the second half of this year,” Ken Cheung, senior Asia foreign exchange strategist at Mizuho Bank in Hong Kong, told CNBC, citing the disruption caused by the trade war.

Separately, in a report released Tuesday, IHS Markit economists said the decline in yuan started earlier in the year as the Federal Reserve continued to raise interest rates.

“As long as there is more tension or more uncertainty around U.S. and China trade, then you can imagine the trade volume between the U.S. and China will come down,” he said. “And that sets back the overall renminbi internationalization in terms of the usage of renminbi as a trade settlement currency.”

The , which tracks the greenback against a basket of other currencies, edged up 0.03% to 94.98 on Thursday.

The dollar was trader slightly weaker against the Japanese yen however, with the pair slipping 0.06% to 110.96.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

New Post has been published on https://worldwide-finance.net/news/commodities-futures-news/forex-new-zealand-dollar-falls-after-rbnz-keeps-interest-rates-at-record-low

Forex - New Zealand Dollar Falls After RBNZ Keeps Interest Rates at Record Low

The New Zealand Dollar fell on Thursday

Investing.com – The New Zealand Dollar fell on Thursday after the Reserve Bank of New Zealand said it expected to keep rates at record low of 1.75% for another two years, as the outlook for the country’s economy remained weak.

The pair fell 0.82% to 0.6679 by 1:13AM ET (05:13 GMT). Central Bank governor Adrian Orr said on Thursday in Washington that he is open to a rate cut if needed.

“We expect to keep the OCR at this level through 2019 and into 2020, longer than we projected in our May statement,” Orr said. “The direction of our next OCR move could be up or down.”

In addition, the central bank trimmed its forecast for economic growth in 2018 as data showed business confidence fell, while housing markets also cooled.

Risks to New Zealand exports also increased amid global trade tensions, RBNZ noted.

Meanwhile, The rose 0.2% against the dollar on Thursday. An article by CNBC said the recent weakness in the Chinese currency is creating challenging headwinds for Beijing’s push to promote its currency globally.

The yuan was under pressure since July amid an , and analysts now believe its push to become a global currency is likely to suffer a setback.

“Renminbi internationalization could be slowing down temporarily in the second half of this year,” Ken Cheung, senior Asia foreign exchange strategist at Mizuho Bank in Hong Kong, told CNBC, citing the disruption caused by the trade war.

Separately, in a report released Tuesday, IHS Markit economists said the decline in yuan started earlier in the year as the Federal Reserve continued to raise interest rates.

“As long as there is more tension or more uncertainty around U.S. and China trade, then you can imagine the trade volume between the U.S. and China will come down,” he said. “And that sets back the overall renminbi internationalization in terms of the usage of renminbi as a trade settlement currency.”

The , which tracks the greenback against a basket of other currencies, edged up 0.03% to 94.98 on Thursday.

The dollar was trader slightly weaker against the Japanese yen however, with the pair slipping 0.06% to 110.96.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

The New Zealand Dollar is seeing sharp movement after the Reserve Bank of New Zealand (RBNZ) held the Official Cash Rate at 2.25%, as markets expected.

📉 NZD/USD dropped back toward 0.6000, testing soft support before bouncing slightly.

What’s Driving the Move?

🔹 RBNZ signaled a longer period of accommodative policy 🔹 Inflation slightly above target but expected to ease toward 2% 🔹 Slow economic recovery, cautious household spending 🔹 USD showing weakness near the 97 level

Governor Breman emphasized no rush to hike rates until stronger economic and inflation data appear.

Technical Snapshot:

• RSI (1H & 4H) shows bullish momentum, nearing overbought • 50-period EMA acting as dynamic support • Short-term pullback possible before continuation

⚠️ Watch external drivers closely: • US Dollar strength • US yields • Dairy & commodity prices • China economic data • Global risk sentiment

🚨 RBNZ Inflation Alert 🚨 Sectoral Factor Inflation: 3.1% YoY (Q4 2024)

New Zealand’s economy stays steady! But will this number nudge the RBNZ toward tightening or cooling down? 🔥

💡 What it means: 🔹 Controlled inflation signals stability. 🔹 Key to upcoming RBNZ decisions. 🔹 Could define NZ's economic path in 2025.

📈 Thoughts? Let’s discuss!!!