In the policy meeting held yesterday, the Reserve Bank of New Zealand (RBNZ) decided to lower its policy interest rate by 0.5%, as expected. In the statement, they mentioned that the new rate of 4.75% is still tight and highlighted that inflation risks are leaning towards a further decline. Additionally, they pointed out that economic growth is their biggest concern, which led to expectations of further rate cuts and caused the New Zealand dollar (NZD) to weaken. The NZD/JPY exchange rate dropped to 90.12 yen.
Later, the NZD/JPY bounced back to 90.75 yen due to expectations of additional economic stimulus from China, but the upward movement remained limited. For now, the exchange rate has avoided falling below 90 yen, but selling pressure continues due to financial factors.
It is predicted that if the USD/JPY exchange rate falls below 148 yen, it could be the moment when the NZD/JPY drops below 90 yen.
NZD/JPY forecast range: 90.90 yen to 89.30 yen (50% retracement level).
*Please note that the above content does not guarantee profits, and you should make your own decisions when trading.