The New Zealand Dollar made extended gains in Europe and rose to the intraday high of 0.6694 from the 0.6632 level after the Reserve Bank of New Zealand lowered their Official Cash Rate by 25 basis points to 3.0% from the former 3.5%. The move was in line within many forecasts, however, it gave dissapointment to some who were expecting more cuts from the central bank.
The RBNZ also said further easing is likely, and further fall in the NZD is justified. It will take time for housing imbalances to be corrected. Growth outlook is softer than June and CPI is close to target in 2016. The OCR rate is likely to be at 2.5% by year end.
Chart: WorldWideMarkets Alpha Trader