NZD/USD: New Zealand dollar may break through the range

Trading recommendations and Technical Analysis – HERE!

 December 9 will host the next meeting of the RBNZ, which will be addressed, including the question on rates. Despite the fact that market participants are more inclined to believe that the RB of New Zealand will lower interest rates from the current level of 2.75%, the NZD/USD received support today. It is expected that the prices of dairy products at the upcoming this week's dairy auction will grow. Today also released the business optimism index, which indicated the growing confidence in the business community of New Zealand in November (against 10,5 14,6 in October).

The previous dairy auction prices for whole milk powder fell 11%. NZD/USD reacted to the sharp decline, showing a high correlation with the prices of commodities and dairy products.

The decline in export proceeds from the sale of dairy products reduces the growth of GDP and inflation, since New Zealand is the largest exporter of dairy products on the world market.

Earlier, the head of RBNZ Graeme Wheeler has repeatedly stated about the possibility of further reducing interest rates in New Zealand.

And on the background of the fact that the fed is preparing for the start of monetary policy tightening in the US, NZD/USD is thus likely to further decrease.

See also review and trading recommendations for GBP/USD!