NZDUSD Intra-Day Fundamentals - Official Cash Rate and 116 pips price movement
- past data is 3.50%
- forecast data is 3.50%
- actual data is 3.50% according to the latest press release
if actual > forecast (or actual data) = good for currency (for NZD in our case)
[NZD - Official Cash Rate] = Interest rate at which banks lend balances held at the RBNZ to other banks overnight. Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future.
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RBNZ Holds OCR Steady At 3.50%
The Reserve Bank of New Zealand's monetary policy board on Thursday decided to hold its Official Cash Rate steady at 3.50 percent - in line with expectations.
It was the fourth straight month with no change for the RBNZ, which had hiked the OCR by 25 basis points in each of previous four meetings prior to September.
Before that, there were 23 straight meetings with no change. The OCR had been at a record low 2.50 percent since March 10, 2011 as the country dealt with the global economic slowdown.
It wasn't until last March that the central bank felt confident enough in a recovery that it lifted the OCR - although no additional action is likely in the near term.
"Trading partner growth in 2015 is expected to be similar to 2014, though the outlook is weaker than anticipated last year. Divergences continue among regions, with growth in China, Japan and the euro area easing in recent quarters, while growth in the US has remained robust," the bank said in a statement accompanying the decision.
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NZDUSD M5: 116 pips price movement by NZD - Official Cash Rate news event :
