NZD/USD jumps 100 pips after RBNZ rate decision

  • The NZD/USD jumped 100 pips to 0.6828 post-RBNZ rate decision.
  • RBNZ kept the interest rates unchanged at 1.75 percent and said the next move in rates could be up or down.
  • NZ-US bond yield differentials remain depressed near three-month lows. 

The bid tone around the NZD strengthened, sending NZD/USD well above 0.68 after the Reserve Bank of New Zealand (RBNZ) kept the interest rates unchanged 1.75 percent. 

In an expected dovish shift, the central bank pledged to keep the overnight cash rate at 1.75 percent through 2019 and 2020 and said the next move in rates could be up or down. The central bank also cited downside risks to inflation and stressed the need to keep policy supportive as the core consumer price inflation remains below the objective of 2 percent target mid-point. 

The positive response from the NZD suggests the markets were likely positioned for a much more dovish RBNZ

That said, the NZD/USD pair could retrace part of the 100-pip rally seen in the last few minutes as the 10-year NZ-US yield spread is still hovering at a three-month low of -58.78 basis points. 

Technical Levels

    1. R3 0.6776
    2. R2 0.676
    3. R1 0.675
  1. PP 0.6734
    1. S1 0.6724
    2. S2 0.6708
    3. S3 0.6698



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD struggling at the lows ahead of US GDP

EUR/USD is trading in the low 1.1100s, consolidating its losses. Markets are stalling ahead of the all-important US GDP report which carries high expectations. Some suspect a "sell the fact" response in reaction to an OK number.


GBP/USD recaptures 1.2900 amid the Brexit impasse, ahead of US GDP

GBP/USD is trading slightly above 1.2900, recovering the lost ground after hitting two-month lows. The Brexit impasse weighs as the main parties have not made progress. The anticipation to US GDP limits movements.


USD/JPY oscillates in a range above mid-111.00s, key US GDP report awaited

The USD/JPY pair failed to capitalize on the intraday bounce and quickly retreated around 15-20 pips from daily tops touched during the Asian session.


US First Quarter GDP Preview: Reasons to be cheerful

US economic growth forecast to be stable in the first quarter. Improved consumer attitudes and retail sales give reason for optimism. Labor market key to economic growth.

Read more

Gold climbs to 1-1/2 week tops, back above $1280 level ahead of US GDP

Gold edged higher on the last trading day of the week and jumped back above $1280 level, just above over one-week tops set in the previous session.

Gold News