Well, the penny for this pair has finally dropped. After the NZDUSD surpassed the psychological 0.88 valuation around one week ago, the 0.8840
At the time of writing, the NZDUSD had dropped over 100 pips since Tuesday's opening price in response to Tuesday evening's CPI (inflation) reading which fell below expectations. High inflation levels have been a major contributing factor behind the RBNZ's decision to hike interest rates for the past three consecutive months. Back in May, when the RBNZ threatened to implement currency intervention, the central bank were explicit in stating that an already appreciated
However, after the RBNZ increased interest rates for the third consecutive month in June, the
As mentioned above, the next RBNZ interest rate decision will be announced on the 23rd July and this means that we can expect further movement in the NZDUSD currency pair until the Central Banks's interest rate decision. Investors will likely continue to deliberate over whether the
In regards to the NZDUSD technicals on the Daily timeframe, the disappointing
Of course, there is also the possibility speculation will emerge that the RBNZ will continue to tighten monetary policy. Either way, this pair will be fun to watch over the next week.
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