- The NZD / USD rose sharply during the Asian session on Wednesday.
- RBNZ left its policy rate unchanged at 0.25% as expected.
- The US Dollar Index clings to gains above 93.00.
The pair NZD / USD It gained traction in the early trading hours of the Asian session on Wednesday and touched its highest level since March 2019 at 0.6904. With market action turning subdued in the second half of the day, the pair began to consolidate its gains and was last seen trading at 0.6878, where it was up 0.75% on the day.
The RBNZ’s policy outlook elevates the NZD
As expected, the Reserve Bank of New Zealand (RBNZ) left its policy rate unchanged at 0.25%. In its Monetary Policy Statement, the Reserve Bank of New Zealand reiterated its willingness to provide additional monetary stimulus to the economy in order to meet its mandate of consumer price inflation and employment.
However, during the press conference, RBNZ Governor Adrian Orr noted that they intend to maintain the policy rate until March and helped the kiwi gain traction against its peers.
Commenting on the RBNZ statement, “The Board acknowledged that the data has proven to be more robust than previously assumed. Additionally, key forecasts were raised, making it difficult to justify an urgent need for negative OCR, “said TD Securities analysts.
On the other hand, the dollar retained its strength in the absence of significant fundamental drivers on Wednesday and limited the pair’s rise. At the moment, the US Dollar Index is at its highest level since Nov. 5 at 93.15, gaining 0.48% on the day.
Trading conditions are likely to remain poor for the remainder of the day due to the Veterans Day holiday in the US.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
