NZD / USD Continues Decline After RBNZ Policy And The Fed

New Zealand's dollar declined 0.4 percent to 0.6671 against the US dollar after the Bank of New Zealand (RBNZ) also announced its monetary policy after the release of the FOMC outcome on Thursday (29/10) this. RBNZ decided not to change interest rates in the range of 2.75 percent OCR and emphasizes the possibility of cutting interest rates again.

However, despite the stated demkian, RBNZ governor, Graeme Wheeler, adding that he also still be watching and waiting to see how the performance of the economic data goes before the RBNZ actually decided to cut interest rates.

Traders RBNZ statement also interpret this as a signal that the central bank does not need to rush to weaken the Kiwi Dollar. RBNZ monetary policy statement that more needs to be considered is monetary policy in December next, which again, are in the same week with the announcement of the Fed's monetary policy is crucial US.


Analysis of Westpac Against RBNZ Policy
According to the release of the Economic Team NZ Westpac, RBNZ decision this September in accordance with the expectations of those who repeat the phrase "OCR further reduction is still possible" depending on economic data.

Westpac detailing the factors that may be taken into consideration for determining the RBNZ monetary policy this month and December, among them:
- Uncertainty in the US Federal Reserve's policy;
- RBNZ mengataka that it is too early to say whether the increase in prices of dairy products recently have recently be sustained, therefore, if it is sustained, the pressure to cut the OCR more mengendir
- The high price of the house is still touched by the RBNZ, notwithstanding this factor is basically not very decisive decision to cut the OCR.
- RBNZ explicitly linking the exchange rate and interest rate mengatkan that if the exchange rate continues to rise as it happened later, then the possibility of lower interest rates will be required.