Last Wednesday, the Reserve Bank of New Zealand lowered its key interest rate from 3.25% to 3.00%, as expected by the market.
Despite the inflation edging up to 2.7% YoY (Vs. 2.5% prior), the NZ central bank is projecting a decline toward the 2.2% in the medium term, which is marginally above the 2% target.
Even with the move already being expected the NZD reacted strong, losing more than 1% against both $NZDUSD and $EURNZD, on the last it touched a 5 year high, surpassing the April peak of 2.0011.
As right now from a fundamental stand point the momentum does not favor the NZD but from a technical perspective I do see as a potential opportunity for a correction towards the 1.975 level in the mid term (1 month period). Anyone else trading this pair? Let me know your thoughts.... Show More
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Sun Jan 25 2026 09:21:35 GMT+0000 (Coordinated Universal Time)
