Sasha Singh
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NZD under pressure after RBNZ decision

Yesterday the RBNZ left the official cash rate unchanged at 2.5%. New Zealand’s economic expansion has considerable momentum as stated by the Reserve Bank Governor Graeme Wheeler and expects the inflationary pressure to increase over next two year and thus there is a need to return interest rates to more normal levels. Bank expects to start this adjustment soon. NZD fell to one month low against USD and also weakened against other major currencies like JPY and AUD. On the daily chart we can see that the pair found support at .8131 but we might see some more downfall in the pair as depicted by the descending triangle drawn on the chart. The 50 day moving average also crossed the 100 day moving average to move downward giving bearish dignal.