RBNZ leaves rates unchanged
The new Zealand dollar rose sharply against the US dollar after
as the Reserve Bank of New Zealand left the official interest rate
Many experts expect a milder statements from
the regulator regarding further opportunities to reduce interest rates
however, they are not followed.
Thus, the official interest rate in New Zealand remained
without changes at the level of 1.75%. In the RBNZ stated that interest rates for a long
the time will remain at a low level, as the prospects of monetary
policy is still surrounded by uncertainty.
Despite this, the market was encouraged by this statement,
as many participants feared further pressure on rates.
With the Reserve Bank of New Zealand predict that
the official interest rate to the 2nd quarter of 2019 will be approximately
Of 1.9%. As for the kiwi, then, according to the Bank, its
further easing will lead to inflation. Meanwhile inflation
consumer prices remains near the middle of the target range, and
long-term inflation expectations anchored at around 2%.
Economic growth, according to banking experts, in the 2nd
quarter was generally in line with expectations.
As for the technical picture, the NZDUSD, judging by
schedule, the bulls managed to keep the bottom line around 0.6840, and rebound from it
will lead to the first important resistance level 0.7000, a break of which
will give a fresh impetus to the continuation of the uptrend with access to
0.7965 and 0.7200.
Commodity currencies left unattended news on inflation
consumer prices in China, which in October of this year has accelerated. Happened
this is against the backdrop of slowing the fall in the price of food.
According to the report of the national Bureau of statistics, index
consumer prices in China in October 2017 rose 1.9% compared with the same period
the previous year, after rising 1.6% in September. Economists had expected
inflation will rise only by 1.8%.
Prices for food products decreased by 0.4% compared to
in the same period of the previous year, after declining 1.4% in September.
The main objective of the Chinese authorities — to keep the annual rate of inflation in
the current year is below 3%.
The material has been provided by InstaForex company — www.instaforex.com