Reserve Bank of New Zealand on the meeting 09.11.2016 cut rates from 2% to 1.75% which was in line with the expectations of most analysts. During the press conference, which was held an hour later, Governor Wheeler, stated very clearly that the rates are currently suspended, also said that the Bank of NZ is ready to intervene in the currency market if it finds that the price of NZ dollar to other currencies, in particular, USD will be too highly priced. The conference concluded with words :”believe that many questions remain, particularly with regard to an international perspective, and monetary policy may need to be adjusted according to the situation, which for the RBNZ is ready “
NZDUSD after the news of lower interest rates increase, followed by the words at the conference about the possibility of intervention RBNZ gave back the increase and began to fall.
AUDNZD breakout from Inside Bar
We can see on AUDNZD chart that the price struck false down and then breaks out from Inside Bar and heads north:
Perhaps AUDNZD begins to realize the scenario of our yesterday’s analysis.