Homiya
Short

NZ Rate Cut coming ? Would be great to sell NZD pairs....

FX:NZDUSD   New Zealand Dollar/U.S. Dollar
143 0 3
USA inflation rate 0.7% to 1.4%
Interest Rates 0.5%
Unemployment 5% - 4.9%


NZD inflation Rate 0.1%
Interest Rates 2.5%
Unemployment 6.0 to 5.3%

Data from tradingeconomics.com

"A bit of inflation can grow the economy"- Inflation Target 2.0% suggested by most of the Central Bankers..

Lower the inflation Higher the purchasing power.. Higher the value..
NZD rate being 2.5% they can cut rate by few bps             .. in order to raise inflation a bit..

Result.. Promote Exports..
Lending Rates reduce more people will borrow and the mid term recovery for NZD (Unlike JPY US rate hike will be affected to NZD as to my think.)

Conclusion..

I'm expecting a bearish view for NZD as long as RBNZ will be willing to cut rates.. Or else we will slowly creep up.. for a while.. before effects happen..

0.6802 being the 1st resistance area
0.7200 being 2nd resitance area


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