The New Zealand dollar sank today after the surprise interest rate cut from the Reserve Bank of Australia. The announcement led to talks that the central bank of New Zealand may follow suit.
The unexpected decision of the RBA made economists speculate about possible monetary easing from the Reserve Bank of New Zealand, which changed its tune to the dovish one. Traders watch will employment data that will be released at the end of the current trading session and the speech of the RBNZ Governor Graeme Wheeler. The New Zealand dollar dipped to the lowest level since March 2011 against its US peer but, unsurprisingly, gained on its Australian counterpart.
NZD/USD dropped from 0.7299 to 0.7209 as of 12:49 GMT today, reaching the daily low of 0.7175. AUD/NZD declined from 1.0675 to 1.0626.
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