The decision of the New Zealand Reserve Bank on interest rates was published overnight. As expected, they remained at 1.75%. The president of the RBNZ said that he did not rule out the further loosening of monetary policy. It all depends on the emerging macroeconomic data, especially the reading on GDP growth. Orr believes that strengthening inflationary pressure is a big challenge for the central bank.
The RBNZ is happy that the unemployment rate is falling. Recall, Tuesday's reading was 3.9% with expectations at 4.4%. Orr has no price target for the New Zealand dollar, but in general, the currency is doing well. Real estate prices can gradually increase. The central bank will maintain a loose monetary policy for as long as necessary.
Let's now take a look at the NZD/USD technical picture at the H4 time frame. After yesterday's strong growth tonight NZDUSD was rather calm. In the morning there was a slight strengthening and finding new highs around 0.6795. Stronger hesitation occurred in the vicinity of the publication of the RBNZ decision, then the price for a moment climbed to 0.6815, but then there was a decline towards the level of 0.6767. Nevertheless, the market is still consolidating the recent gains as it is trading inside of the horizontal zone between the levels of 0.6018 - 0.6767 in overbought market conditions.
