NZD/USD bulls await FOMC minutes – by fx_ross NZDUSD Currencies Fed CentralBanks RBNZ
US Dollar is under pressure amid poor PMIs while NZD is supported by a hawkish RBNZ.
NZD/USD rallied to a high of 0.6236 on Wednesday, from a low of 0.6123 and was approaching its strongest levels in nearly three months after the Reserve Bank of New Zealand delivered a supersized 75 basis point rate hike to get ahead of inflation.introduced the OCR in 1999 and brought the policy rate to a 14-year high of 4.25%. Meanwhile, in the statement, it was explained that the central bank's board expects the cash rate to peak at 5.5% in September 2023 according to its latest forecasts.
The members of the board had considered a 100Bp rate rise which fuelled the rally in the bird. Stubbornly high inflation and near-record-low unemployment in New Zealand supported the case for a more aggressive move. Finance Minister Grant Robertson said before the event that the country was well-positioned to withstand a global recession due to robust growth and a stable financial system.
The projected peak of 5.5% was well above consensus which led to the two-year swap rates to surge 29 basis points to 5.285%, the biggest daily jump since 2009. Analysts at ANZ Bank have revised their forecasts higher, now expecting an additional 50 bp increase in April and a 25 bp one in May, which would take the peak to 5.75%.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
NZD/USD portrays pre-RBNZ caution around 0.6150, FOMC Minutes eyed as wellNZD/USD treads water around the mid-0.6100s amid the final nail-biting hours to the key Reserve Bank of New Zealand (RBNZ) Interest Rate Decision on W
Read more »
NZD/USD sticks to post-RBNZ gains near multi-month high, focus shift to FOMC minutesThe NZD/USD pair catches fresh bids on Wednesday and jumps closer to a multi-month top in reaction to a more hawkish Reserve Bank of New Zealand (RBNZ
Read more »
NZD/USD: Bounce to persist towards 0.6260 and the 200DMA at 0.6310/0.6340 – SocGenNZD/USD is climbing toward 0.6200. Economists at Société Générale expect the rebound to extend towards 0.6260, the 200-Day Moving Average at 0.6310/0.
Read more »
NZD/USD Forecast: Continues Overall ConsolidationThe NZD/USD has rallied a bit during the trading session on Tuesday as we continue to see a lot of choppy behavior.
Read more »
NZD/USD: Break above 0.6203/05 to expose the 200 DMA at 0.6302 – Credit SuisseNZD/USD is testing the top of its recent range at 0.6203/05. A close above there would expose the 200-Day Moving Average (DMA) at 0.6302, analysts at
Read more »
When is the RBNZ and how it could affect NZD/USD?Early Wednesday at 01:00 GMT market sees the key monetary policy decision by the Reserve Bank of New Zealand (RBNZ) amid hopes of another hawkish play
Read more »