THE RBNZ CONFIRMS OPTIMISTIC VIEW ON NEW ZEALAND’S ECONOMY
The NZD/USD price showed an increase in volatility after the publication of the Reserve Bank of New Zealand’s monetary policy. The central bank decided to keep interest rates at 1.75%. Bulls were satisfied by the rhetoric from the central bank, according to which the outlook on economic growth remains optimistic despite the slowdown of its expansion in the first quarter. At the same time, inflation increase in the first quarter was most likely temporary. However, data on the number of tourist arrivals slowed to 8.0% growth for May on an annualized basis; much worse compared to 21.5% in April.
Recently the quotes left the limits of the triangle and fixed beyond its boundaries. As a result, we may see continued growth up to closest resistance at 0.7300 and then to 0.7375. On the other hand, in order to change the trend to negative, the kiwi has to break through support at 0.7190, that may become a stimulus for further declines to 0.7110 and 0.7050. The mood of traders today is likely to be influenced by statics on unemployment claims in the US at 12:30 GMT and the speech of FOMC member Powell at 14:00 GMT.