After the Reserve Bank of New Zealand unexpectedly decided to revise its economic forecasts, the expectations of another interest rate cut by the RBNZ increased. At the same time, some experts believe that the central bank is trying to devalue the national currency a little bit to make the local exports more competitive.
Top be more specific, the RBNZ decided to release a revised report on the local economy. Market participants saw it as preparations for another interest rate cut in August 2016. The central bankers themselves explain it as a standard procedure.
Despite the fact that the next monetary policy meeting is going to be ignored for some organizational reasons, the economic estimation is still going to be published in August, regardless of of the meeting. This triggered an increase in the mentioned expectations of another interest rate cut from 40% all the way up to 60% at a time, Market Leader reports.
FOREX
The New Zealand Dollar keeps on retracing from a long-term uptrend against U.S. Dollar, Masterforex-V Academy reports. Even though the price is still moving within the scope of a major bullish wave, which is wave 3/C of level Weekly, at the very moment the price is getting the wave level of the retracement increased
If the price breaks below MF pivot 0.7078, this is going to finish the current move. However, if the price breaks above the 0.7323 high, the rally is likely going to resume. If that’s the case, the next major levels of resistance are 0.7404/12, 0.7445/54, 0.7528/36.
