Market news

12 February 2020

New Zealand: RBNZ lifts the NZD/USD pair – Rabobank

FXStreet reports that economists at Rabobank note the Reserve Bank of New Zealand (RBNZ) took a steady interest rate decision overnight but it was the optimistic tone of the accompanying statement which took the market by surprise.

“The December unemployment rate unexpectedly dropped to 4%, Q4 headline CPI at 1.9% y/y was a little faster than expected and house price inflation picked up into the end of last year. The better data can be linked with the 75 bps in rate cuts announced by the RBNZ last year in addition to the government’s increase in fiscal spending.”   

“The RBNZ indicated that any coronavirus impact would likely be short-lived. The result was a sharp drop in expectations regarding further interest rate cuts from the RBNZ and a spike higher in the value of the NZD/USD. In our view, however, the NZD is not out of the woods yet.”

“The RBNZ forecasts that economic growth will accelerate over the second half of 2020 on the back of both monetary and fiscal stimulus.”

“The RBNZ policy look set to remain on hold. However, if evidence mounts that the impact from coronavirus is set to be significant, the RBNZ will likely be forced to react. We see risk of AUD/NZD heading lower towards the psychologically important 1.03 level.”

Open Forex Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2021 Teletrade-DJ International Consulting Ltd

Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Telerade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Telerade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.