Kiwi fell to its lowest in 2018 after Governor Orr statement, Short NZD/USD?
RBNZ has left rates unchanged at 1.75% as expected. Even though New Zealand has seen solid global and domestic growth, with the economy operating around full potential, RBNZ has revised forecast for GDP and inflation downwards.
Three dovish statements have led us to believe that NZD will continue to fall in weeks to come:
Despite New Zealand's headline CPI inflation, on the whole, has been positive, RBNZ is still pretty cautious in their policy and awaits stronger data before changing their monetary policy moving forward.
