Global macro overview for 28/04/2016:
The Reserve Bank of New Zealand kept interest rates unchanged at the level of 2.25%. Nevertheless, the RBNZ statement clearly indicated a possible further rate cut if the global economic growth slows and the strong NZD will prolong the period of muted inflation. The RBNZ inflation projection for this year is at the level of 1% and it should reach the 2% target midpoint by early 2018. The recent CPI reading revealed that the prices climbed just 0.4%. In conclusion, please notice, that the RBNZ cut the interest rates five times during last year and all bets are now on the RBNZ cutting the OCR to 2.0% in June.
Let's now take a look at the NZD/USD technical picture in the daily time frame. The market is still moving inside the bullish channel and the recent no-cut decision pushed the price back above the resistance at the level of 0.6965. The bulls still seems to be in control of this market, and the next resistance at the level of 0.7055 is eyed now.
