Kiwi stands still after RBNZ holds
On Thursday, the New Zealand dollar stood still against its major American counterpart, after the Reserve Bank of New Zealand left interest rates intact, while the Australian dollar moved up as the Fed’s latest policy decision weighed broadly on the US dollar.
The currency pair NZD/USD was almost unchanged at 0.7340.
In a widely expected move, the RBNZ left its benchmark interest rate intact.
Current projections as well as assumptions show that further policy easing will be required just to ensure that future inflation settles close to the middle of the target range.
The currency pair AUD/USD went up 0.33%,trading at 0.7651, the highest outcome since September 9.
Meanwhile, the US dollar came under pressure after the Fed left its interest rates intact at the conclusion of its policy gathering on Wednesday.
Furthermore, the Fed dropped the total number of rate hikes it expects in 2016 from two to one and projected a less aggressive growth in interest rates in 2017 and 2018.