NZD / USD up after RBNZ meeting

NZD / USD exchange rate reacted with an increase to the results of today's meeting of the Reserve Bank of New Zealand (RBNZ). At 09:42 the New Zealand dollar had to be paid 0,7019 against PLN 0,6949 at the end of the day yesterday. Its further strengthening is the most likely scenario at the moment.

End of quantitative easing

At the July meeting RBNZ will not change interest rates in New Zealand, leaving the main at 0,25%, but the bank announced the end of the NZD 100 billion quantitative easing program introduced in connection with the coronavirus pandemic. 

The New Zealand dollar reacted to this decision with a strengthening. The market expects that the bank will raise interest rates later this year in fear of the growing inflationary pressure observed basically all over the world, but also in fear of overheating of the real estate market in New Zealand.

Today's strengthening of the New Zealand dollar perfectly matched the technical situation on the NZD / USD chart, after the demand side successfully defended the June low at 0,6923 since the beginning of July. On the basis of technical analysis, now the most likely scenario is a return to the area of ​​0,71, and then increases towards 0,73. This last level is likely to be tested at the beginning of August.