The Reserve Bank of New Zealand is reported to have left its monetary policy unchanged in April 2016. Despite mild rhetoric of the central bank and the discontent with a strong national currency, the New Zealand Dollar continued its strengthening against the U.S. Dollar and some other major currencies out there.
To be more specific, the RBNZ decided to leave the key interest rate unchanged at 2,25% as the result of the April meeting. Amid multiple statements that the central bank’s monetary policy is going to be an easy one, the RBNZ confirmed the likelihood of further interest rate hikes if necessary.
When taking about further monetary easing, the RBNZ relies on low inflation, which creates some space for another interest rate hike. The central bankers say that the rate of inflation has been stable and low over the recent months. However, they assume that the rate of inflation is going to start growing as the negative impact of low oil prices diminishes. Still, they don’t expect inflation to go much higher in the coming months.
The latest meeting minutes also mention a too strong national currency. The central bankers wouldn’t mind a weaker one. It is interesting to note that even the recent report coupled with the statements made by the RBNZ failed to curb the rally of the New Zealand Dollar, which is sill underway.
Forex
In the meantime, the New Zealand Dollar keeps on rallying within the scope of the same long-term rally against the U.S. Dollar, Masterforex-V Academy reports. To be more specific, NZDUSD is going up within the scope of wave 3/C of level Weekly. There is a minor wave – wave b(C ) inside the mentioned move.
On breaking above the 0.7053 high, the currency pair is going to extend the existing wave. The closest major levels of resistance are such Fibo levels as 0.7110, 0.7154/79, 0.7219/36. Alternatively, a break below the bottom of the ascending MF sloping channel and MF pivot 0.6761 is going to complete the existing rally.
