The RBNZ hiked its official cash rate by 25 basis points to 3.50% from 3.25%. The decision was in line with expectations, and it marked the fourth straight meeting in which the RBNZ has hiked the OCR.
Wheeler noted that
The economy seems to be adjusting with recent monetary policy tightening cycle, Wheeler told. Regarding future course of monetary policy, Wheeler noted that "it would be wise that there now be a period of assessment before interest rates adjust further towards a more-neutral level."
In economic news,
Exports were up NZUSD4.20 billion in June, while imports added NZUSD3.95 billion.
The kiwi fell by 1.1% to hit a 6-week low of 87.25 against the yen, off a high of 88.26 hit at the commencement of today's trading. The next possible downside target for the kiwi is seen around the 86.00 mark.
Reversing from an early high of 1.5459 against the euro, the kiwi declined to a 4-week low of 1.5661 during Asian deals. The kiwi is poised to test support around the 1.575 region.
The kiwi came off from early high of 1.0852 against the aussie and fell by 1.2% to a new 6-week low of 1.0997. The kiwi is likely to challenge support around the 1.10 level. The pair was valued at 1.0856 when it closed deals yesterday.
Looking ahead, PMIs from major European economies are due in the European session.
The US weekly jobless claims for the week ended
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