The New Zealand Dollar fell against the Greenback, following the RBNZ monetary policy announcement and interest rate decision, which matched analysts' forecasts. The NZD/USD fell 0.19% to the 0.7207 area to finish the Wednesday session trading flat near the 0.7205 level. The key target level for the pair remained at the 0.7100 mark as the US Dollar was likely to rise on tighter policy of the Fed.
The Reserve Bank of New Zealand left its key interest rate unchanged at 1.75% as widely anticipated. Meanwhile, the Bank revised projections for the country's economy, expecting it to maintain current expansion pace, and softened the stance around the local currency, as its weakness could contribute to the inflation growth.
| Historical Data Table: RBNZ Interest Rate Decision | |||||
| Date | 22.03.2017 | 10.05.2017 | 21.06.2017 | 9.08.2017 | 27.09.2017 |
| Actual | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% |
| Forecast | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% |
| Initial Reaction on Main Pairs | |||||
| Open Price | Close Price | % Change | |||
| AUD/NZD | 1.08842 | 1.08987 | 0.13% | ||
| EUR/NZD | 1.62813 | 1.63044 | 0.14% | ||
| GBP/NZD | 1.85637 | 1.8586 | 0.12% | ||
| NZD/USD | 0.72213 | 0.72075 | -0.19% | ||