Experts say that the Reserve Bank of New Zealand won’t have to implement currency interventions. As opposed to the Bank of Japan and the Swiss National Bank, the RBNZ has enough weapons in its arsenal to curb the strengthening of its national currency.
A stronger national currency resulted in deflation processes in Japan and Switzerland. However, the central banks of those countries have already run out of efficient tools that would allow them to curb the strengthening of their national currencies. The only way put for them is to implement a series of currency interventions.
At the same time, the RBNZ’s key interest rate is relatively high, which gives the central bank more space for maneuver.
The central bank couldn’t but notice that the latest currency interventions implemented by the BOJ and SNB were rather risky.
Moreover, some experts say that any currency intervention will be extremely costly for the RBNZ if to consider the current economic situation in the country and around the globe.
Forex.
According to , the New Zealand Dollar keeps weakening against the US Dollar. The experts report that NZDUSD is forming a downswing represented by wave А/В of level H8.
A further downswing may have difficulty overcoming the levels around 0.8168, 0.8146, 0.8131, 0.8112. The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 0.8335 (as shown below).
