New Zealand dollar is the best performing major currency today, following the RBNZ rate decision. Central bank delivered a second 50 basis point rate hike in a row, putting the official cash rate at 2.00%. Bank noted that all core measures of inflation exceed 3% and stays committed to bringing it down. Expected rate hike forecasts moved higher with RBNZ now expecting the official cash rate to be 2.68% in September 2022, 3.88% in 2023 and 3.95% in September 2023. RBNZ Governor Orr said during a press conference that he believes the current neutral rate is in 2-3% range but 'doing too much too fast on rates' is the least concern the Bank now has. Market now expects RBNZ to deliver another two 25 basis point rate hikes in July and August.
NZDUSD got a lift following the decision announcement and during the press conference. Pair jumped and traded above 0.6500 briefly but bulls failed to hold onto those gains. NZDUSD pulled back slightly but still remains close to the resistance zone marked with 38.2% retracement of recent correction, 200-period moving average (H4 interval) and the upper limit of an upward channel. Note that USD is likely to become more active this evening when FOMC minutes are released at 7:00 pm BST so another attempt of breaking above the aforementioned resistance may be made.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
