NZ Dollar Trades Higher After RBNZ Holds Official Cash Rate Steady
12 February 2020 - 12:56PM
RTTF2
The NZ dollar traded higher against its major opponents during
the Asian session on Wednesday, after the Reserve Bank of New
Zealand kept its Official Cash Rate unchanged at a record low.
The RBNZ maintained the OCR at 1 percent, as expected.
Employment is at or slightly above its maximum sustainable level
while consumer price inflation is close to the 2 percent mid-point
of our target range, the bank said in its statement accompanying
the decision. Low interest rates remain necessary to keep
employment and inflation around target.
It was the third straight meeting with no change after the
central bank reduced the OCR by 50 basis points on August 7, from
1.50 percent to 1.00 percent.
Asian markets remain mostly higher as anxiety ebbed over the
spread of coronavirus.
U.S. President Donald Trump said Chinese President Xi Jinping
told him the deadly virus will be gone by April as temperatures
begin rising.
The kiwi appreciated to a 2-week high of 1.6857 against the euro
from Tuesday's closing value of 1.7044. Next key resistance for the
kiwi is seen around the 1.66 level.
The kiwi spiked up to a 6-day high of 0.6477 against the
greenback, compared to 0.6402 hit late New York Tuesday. On the
upside, 0.66 is possibly seen as the next resistance for the
kiwi.
The NZ currency approached a 6-day high of 71.16 against the yen
and a 5-day high of 1.0398 against the aussie, from yesterday's
closing values of 70.28 and 1.0477, respectively. The kiwi may
target resistance around 73.00 against the yen and 1.02 versus the
aussie.
Looking ahead, Eurozone industrial production for December is
due in the European session.
Federal Reserve Chair Jerome Powell will testify on the
Semiannual Monetary Policy Report before the Senate Banking
Committee in Washington DC at 10:00 am ET.
In the New York session, U.S. monthly budget statement for
January is scheduled for release.
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