The Reserve Bank of New Zealand prepares for a monetary policy meeting where it is likely to cut interest rates. Yet the New Zealand dollar looks unfazed by the prospects for monetary easing, staging a strong rally during the Wednesday’s trading session.
The RBNZ will announce its decision as of 21:00 GMT today. The general consensus is that the central bank will cut its main interest rate by 25 basis points to 2%. While such view should be detrimental to the New Zealand currency, in reality the kiwi looks very strong, at least for now.
NZD/USD jumped 1.2% from 0.7163 to 0.7253 as of 11:42 GMT today. EUR/NZD declined from 1.5509 to 1.5412.
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