RBNZ is pushing NZD higher
Christophe Chevalier November 11, 2020 7:19 AM
The Reserve Bank of New Zealand kept its benchmark rate unchanged at 0.25% as expected.
This morning, the Reserve Bank of New Zealand kept its benchmark rate unchanged at 0.25% as expected. RBNZ said additional stimulus would be provided through a Funding for Lending Programme (FLP), commencing in December, and "monetary policy will need to remain stimulatory for a long time". It added in its Minutes that the Banking System is on track to be operationally ready for negative Interest Rates by year end.
From a technical point of view, on a daily chart, NZD/USD has broken above the upper boundary of a bullish channel and is supported by its rising 50-day moving average (in blue). Readers may therefore consider the potential for further advance above 0.6670. The nearest threshold would be set at horizontal resistance at 0.7050 and a second one would be set at 0.7160 in extension.
Source: TradingView, GAIN Capital
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