The New Zealand dollar rallied today against its US counterpart as Forex traders are counting on the New Zealand central bank to raise interest rate at tomorrow’s policy meeting. The kiwi was not able to outperform the Japanese yen.
The Reserve Bank of New Zealand will announce its policy decision tomorrow and economists expect the central bank to raise its main interest rate by another 25 basis points to 3.25 percent. Considering that such decision is already priced in, perhaps comments in the statement and at the press-conference will more important than the decision itself. The New Zealand currency will be in danger if the central bank switches from hawkish to more neutral tone.
NZD/USD advanced from 0.8524 to 0.8563 as of 16:16 GMT today. NZD/JPY traded at 87.31 following the rally from 87.24 to 87.62.
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