The Royal Bank of New Zealand announced a 0.50% rate cut today, and this pair didn’t react much. Although a cut was expected, most economists suggested a 0.25% cut. The statement suggested that the cut was a once off type cut as it was a move to be proactive about the needed construction around the city of Christchurch which was recently devastated by an earthquake.
The previous support level of 0.7350 stay in play, and it looks like a continuation of the previous 0.73 and 0.78 consolidation area is about to continue. If we can get a break below the 0.7350, it is possible we get to 0.6950 before it’s all said and done.
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