![(07 AUGUST 2019) DAILY MARKET BRIEF 2:NZD in the doldrums amid surprise 50bps cut from RBNZ (07 AUGUST 2019) DAILY MARKET BRIEF 2:NZD in the doldrums amid surprise 50bps cut from RBNZ](https://c.mql5.com/6/838/splash-728714.jpg)
(07 AUGUST 2019) DAILY MARKET BRIEF 2:NZD in the doldrums amid surprise 50bps cut from RBNZ
![Jiming Huang Jiming Huang](https://c.mql5.com/avatar/2015/11/563C54E3-36DF.jpg)
The RBNZ has choose its side and it is going to be the dovish one. Adrian Orr not only over delivered by cutting 50bps but also open the door to negative interest, or even non-conventional policy, amid worsening economic outlook and subdued inflation pressures. The Australian dollar was also affected by the decision of its neighbour’s central bank as investors anticipate the RBA will follow the footsteps the RBNZ and cut further interest rates. Australian and New Zealand are some of the few countries that are not using negative rates. However, times are changing and the countries are starting to pay a price for their dependency to the Chinese economy. Indeed, 39% of Australia’s exports goes to China, this figure reaches 28% for New Zealand). We believe that both the Kiwi and the Aussie will continue to move lower.3