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24 Apr 2013
Forex Flash: RBNZ disappoint rate cut expectations - Westpac
FXstreet.com (Barcelona) - The RBNZ’s was mostly a repeat of the statement from March, notes Sean Callow, FX strategist at Westpac, adding that "it has probably disappointed those expecting further emphasis on the high NZD, and therefore an increased chance of a rate cut."
Sean continues: "All of the key points from the March statement were repeated, but there was a notable omission from the final policy paragraph – the sentence 'There are both upside and downside risks to this outlook' was omitted. This was interpreted as reducing the chance of a rate cut."
Looking ahead, Sean notes "the initial reactions are probably adequate so there may be little follow through as the day progresses. NZD/USD has minor resistance at 0.8460, and 0.8500 beyond is a major cap."
Sean continues: "All of the key points from the March statement were repeated, but there was a notable omission from the final policy paragraph – the sentence 'There are both upside and downside risks to this outlook' was omitted. This was interpreted as reducing the chance of a rate cut."
Looking ahead, Sean notes "the initial reactions are probably adequate so there may be little follow through as the day progresses. NZD/USD has minor resistance at 0.8460, and 0.8500 beyond is a major cap."