Although economic assessment tomorrow, gives the RBNZ predicted would not offend any of OCR rates until August. Speculation that pops up says, the central bank would cut the tribe into 2 percent interest at the meeting next month following the austerity measures imposed on housing sector yesterday. Per next month, the New Zealand Central Bank requires investors to first provide the deposit an amount of 40 per cent, up from the previous 30 percent.
NZD/USD Could Overreact
The market has been raising their stake to 80 percent to the possibility of cutting interest rates in August," said Mitchell McIntyre, senior forex dealer interviewed by Scoop. However, the New Zealand dollar may have oversold and even could have been reacting too much to respond to an economic assessment of the RBNZ tomorrow. This means that New Zealand dollar had a chance to rise again, said McIntyre.
Not only is McIntyre, Michael Gordon, Economist at Westpac, also said that the new rules made by the RBNZ for tackling the problem of housing prices yesterday is considered opened the door wide cuts in interest rates. It's even been sure of the established economic assessment by tomorrow.
In addition, the price of milk powder in the GDT auction night recorded rising 1.9 percent provides a support for the restoration of the New Zealand dollar today. The increase in the price of milk, which is the main export of New Zealand, due to financial support in partnership with the European Union and New Zealand to help dairy farmers.
EmoticonEmoticon