Hello pipstars, what you think about the longer effect of the rate cut in NZD? D o you think the kiwi will keep going down town or will the fact that increase in tourism and moos will keep it afloat?
I mean New Zealand is also a good movie site and more writers are writing with New Zealand locations in mind and that will boost tourism even more.
So pipstars, what y’all think. although I made a goof during the RBNZ news. but hoping to correct soon.
Hello FX-pip-noichi!
Eddie-B, a fellow Kiwi-specialist trader, is absutely right in pointing you toward those threads…
I am afraid that no amount of ‘Tolkien tourism’ is going to boost the New Zealand Dollar, as the Royal Bank of New Zealand has being doing everything it can to slash its export costs by talking down the NZD, by cutting the official cash rate, and by maintaining a dovish plan for the NZD going forward… When a central bank does not do quantitative easing but does all of the above, you know that its currency’s fall is much stronger than a mere chart-led, technical move…
Good luck and feel free to join the Kiwi discussion on the other threads!
Thanks a lot.
Looks like that rate cut has been priced in for quite some time, which explains why NZD bounced during the actual announcement. Still, there are plenty of downside risks for the economy, mostly due to falling trade terms with China, even with the potential support it can draw from tourism and even migration.
PS: as discussed by Sam Coventry, Economics Editor, herehttps://www.poundsterlinglive.com/nzd/2530-new-zealand-dollar-lower-more-rate-cuts-ahead-45345 , there is one more possible/anticipated RBNZ rate cut in December, and in the NZD case this does translate into bearish trend continuation rather than a ‘priced-in’ stagnation of price movement…
…particularly with both gbp and usd considering going the opposite way with rate hikes
Quite true!