NZD/USD Intra-Day Fundamentals: RBNZ Official Cash Rate and 155 pips range price movement
2016-08-10 21:00 GMT | [NZD - Official Cash Rate]
- past data is 2.25%
- forecast data is 2.00%
- actual data is 2.00% according to the latest press release
if actual > forecast (or previous one) = good for currency (for NZD in our case)
[NZD - Official Cash Rate] = Interest rate at which banks lend balances held at the RBNZ to other banks overnight.
"The Reserve Bank today reduced the Official Cash Rate (OCR) by 25 basis points to 2.0 percent."
"Global growth is below trend despite being supported by unprecedented levels of monetary stimulus. Significant surplus capacity remains across many economies and, along with low commodity prices, is suppressing global inflation. Some central banks have eased policy further since the June Monetary Policy Statement, and long-term interest rates are at record lows. The prospects for global growth and commodity prices remain uncertain. Political risks are also heightened."
"Weak global conditions and low interest rates relative to New Zealand are placing upward pressure on the New Zealand dollar exchange rate. The trade-weighted exchange rate is significantly higher than assumed in the June Statement. The high exchange rate is adding further pressure to the export and import-competing sectors and, together with low global inflation, is causing negative inflation in the tradables sector. This makes it difficult for the Bank to meet its inflation objective. A decline in the exchange rate is needed."
NZD/USD M5: 155 pips range price movement by RBNZ Official Cash Rate news event