NZD/USD: RBNZ Monetary Policy Statement and Rate Statement

The New Zealand Dollar depreciated against the US Dollar, following the RBNZ Monetary Policy and Rate Statement data releases on Wednesday at 2:00 GMT. The NZD/USD exchange currency rate lost 104 pips or 1.59% right after the release. The Kiwi continued trading at the 0.6400 level against the US Dollar.

Reserve Bank of New Zealand released the New Zealand Official cash Rate data, which came out lower-than-expected of 1.00% compared with the forecast of 1.25%.

According to the official release: "Global economic activity continues to weaken, easing demand for New Zealand's goods and services. Heightened uncertainty and declining international trade have contributed to lower trading-partner growth. Central banks are easing monetary policy to support their economies. Global long-term interest rates have declined to historically low levels, consistent with low expected inflation and growth rates into the future. In New Zealand, low interest rates and increased government spending will support a pick-up in demand over the coming year. Business investment is expected to rise given low interest rates and some ongoing capacity constraints. Increased construction activity also contributes to the pick-up in demand."