The New Zealand Dollar was little moved on Tuesday as investors looked to stay on the sidelines in preparation for todays RBNZ Rate Statement release due this afternoon. Opening the morning at 0.6734 the Kiwi traded in a tight range hitting highs overnight of 0.6742 as risk appetite looks to have improved in the market.
We saw a 2% rise in inflation expectations in New Zealand, easing slightly from 2.03% for the previous quarter, in line with the expectations that there could be an increased chance of interest rate decline in 2019.
This afternoon sees the RBNZ release this year’s first interest rate decision where it is expected that rates will stay on hold at the benchmark rate of 1.75%. Investors will be keen to read the latest monetary policy statement as central banks around the world continue to downgrade their growth figures for 2019, citing economic slowdowns globally.
The New Zealand Dollar opens this morning at 0.6735.