Aussie and Kiwi surge after RBNZ and Fed hold
On Thursday, the New Zealand as well as Australian dollars managed to gain ground again their US rival, when the Reserve Bank of New Zealand and the Fed both left their interest rates intact.
The currency pair NZD/USD soared 1.02%, trading at 0.6955, the highest value since April 21.
In a widely expected move, New Zealand’s major bank left its benchmark interest rate at 2.25% following the conclusion of its monthly policy gathering.
The New Zealand major bank announced that its monetary policy is still going to be accommodative and also added that extra easing might be required to ensure that future average inflation settles close to the middle of the target range.
The currency pair AUD/USD soared 0.46%, trading at 0.7635.
Meanwhile, the evergreen buck edged lower when on Wednesday the Fed refused to change its interest rates already set close to zero and provided little guidance on future rate hikes.
In a statement issued following its gathering, the US major bank told that it’s going to monitor global economic and financial developments and domestic inflation.