The Reserve Bank of New Zealand has decided to leave the key interest rate unchanged at 2.5%. The decision matched the forecasts.
According Alan Bollard, Governor of RBNZ, the inflation growth has few possibilities, so the rate of inflation is expected to stay within the target range. New Zealand’s economy is showing signs of recovery. The business activity in NZ’s housing market keeps growing, thus contributing to the recovery of the construction sector.
Nevertheless, the RBNZ is still concerned about the global economic prospects. Indicators have slowed down while market sentiments are still far from being positive.
According to , NZDUSD is fluctuating within the 0.8318-0.8087 range formed by wave А/В of wave level Daily. There is an upswing – wave А/В Н4 - being formed inside the price range. The closest level of resistance is the MF pivot 0.8232, a break and consolidation above which will give way to 0,8318. A break below the bottom of the price range will resume the long-term downtrend in the form of wave С of wave level. 0.8058 will turn into the closest major level of support.
