The GBPNZD exchange rate has considerably decreased, dropping quickly back down to the level of the May highs at 1.8975. What else should we expect? Learn more from 6 November NZDUSD Fundamental Analysis from OctaFx.
6 November, OctaFX – Investors losses faith in the New Zealand Dollar as it dwindled again as the latest domestic data failed to dazzle investors, following the persistent political tensions weighing on NZD exchange rates. Earlier in the day, the Reserve Bank of New Zealand (RBNZ) announced a slight downtick in inflation expectations. Third quarter inflation expectations slipped to 2% annually, official data showed. That’s down from 2.1% the previous month.
Economists are in expectations that the Bank will leave the interest rate fixed at 1.75%, however, the following statement should give hints as to how policy-makers perceive economic activity progressing. This implies that domestic inflationary pressures are most likely to continue relatively moderate over the next two years, granting the central bank less motivation to reverse to a hawkish outlook.
6 November NZDUSD Fundamental Analysis
The New Zealand dollar fell against the greenback on Monday, as investors digested the latest inflation figures. The NZD/USD was down 0.2% at 0.6890, extending a three-week downtrend that has wiped more than 300 pips from the pair.
The pair is expected to fall even further as the RBNZ remains on hold with respect to monetary policy while the Federal Reserve signals for higher rates. The NZD/USD faces immediate support at 0.6820. On the opposite side of the ledger, resistance is located at 0.6992.
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