Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

New Zealand dollar continued its slide against its US counterpart on Thursday after Reserve Bank of New Zealand introduced no change in the base interest rate.

NZD/USD pair slid to a session low at 0.7894 during Asian trade, after which consolidation followed at 0.7910. Support was expected at June 10th low, 0.7836, while resistance was to be met at June 7th high, 0.8016.

Earlier on Thursday, RBNZ announced its decision to leave the base interest rate at record low of 2.5% and keep this course by the end of this year. Concerns appeared that national currency was still overvalued and additional demand for the kiwi, as the New Zealand dollar is often called, needed to be avoided. RBNZ revised down its growth forecast, regarding the year until March 2014, to 3%, as previously it was 3.3%. The bank projected a growth of 2.8% this year. Experts from the central bank also stressed that housing market boom posed a threat to financial stability along with the rising value of the national currency, which could obstruct export. However, some traders expressed their expectations that the central bank of New Zealand will raise interest rates early in 2014.

“Given this outlook, we expect to keep the OCR (official cash rate) unchanged through the end of the year,” Governor Graeme Wheeler said.

On Wednesday industrial data showed that house price inflation in New Zealand rose by 0.7% in May, after a 0.8% increase during the previous month.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Facebook Inc. share price up, acquires Oculus VR Inc. in a 2-billion-dollar dealFacebook Inc. share price up, acquires Oculus VR Inc. in a 2-billion-dollar deal Facebook Inc. scored its second-largest acquisition in 2014 after it agreed to acquire Oculus VR Inc. in a deal estimated to 2 billion dollars in cash and stock.Facebook Inc. made an official announcement revealing that it has agreed to […]
  • Forex Market: USD/CAD daily trading outlookForex Market: USD/CAD daily trading outlook Friday’s trade saw USD/CAD within the range of 1.2831-1.2953. The pair closed at 1.2909, advancing 0.43% on a daily basis. It has been the 45th gain in the past 89 trading days. The daily high has been the highest level since April 18th, when […]
  • Forex Market: EUR/GBP daily forecastForex Market: EUR/GBP daily forecast During yesterday’s trading session EUR/GBP traded within the range of 0.8262-0.8285 and closed at 0.8274.At 6:33 GMT today EUR/GBP was losing 0.05% for the day to trade at 0.8270. The pair touched a daily low at 0.8268 at 6:32 […]
  • Forex Market: AUD/USD trading outlook for June 6thForex Market: AUD/USD trading outlook for June 6th Friday’s trade saw AUD/USD within the range of 0.7224-0.7369. The pair closed at 0.7367, soaring 1.89% on a daily basis. It has been the 11th gain in the past 23 trading days and also the sharpest one since June 2nd, when the pair appreciated […]
  • US stock-index futures decline amid stimulus tapering talkUS stock-index futures decline amid stimulus tapering talk U.S. stock-index futures retreated, indicating the Standard & Poor’s 500 Index will fall for a third day, amid investor speculation the Federal Reserve will pare bond purchases as the economy strengthens.Futures on the S&P 500 […]
  • Apple shares close lower on Monday, company to invest in LG OLED technologyApple shares close lower on Monday, company to invest in LG OLED technology Apple Inc (AAPL) was reported to be nearing a deal with LG in regard to OLED screen supply, as the tech company strives to enrich its supply chain. At present, Samsung is Apples main OLED supplier.Apple shares closed lower for the […]