The New Zealand dollar reached for the sky but met the RBNZ there, and couldn’t maintain the gains. It now faces a bigger test from the Bank: the rate decision. Here is an analysis of fundamentals and an updated technical analysis for NZD/USD.
Inflation in New Zealand is lower than expected: a drop of 0.3% in quarterly prices in Q1 2015. This was due to oil prices but slightly worse than predicted. Yet the bigger blow came from the central bank: the regular complaint about the exchange rate was accompanied by a statement saying the rates will not rise anytime soon. This hurt the kiwi. In the US, data is beginning to look better with existing home sales on the rise but other data was weak and the dollar struggled.
Read the rest of the article NZD/USD Forecast Apr. 27 – May 1