At yesterday’s Tokyo session, the Reserve Bank of New Zealand (RBNZ) cut its policy rate by 0.5%, bringing it down to 3.75%, as expected. Since the market had already priced this in, NZD/JPY dropped to 86.17 but later bounced back to 97.02, showing unstable movements.
RBNZ Governor Orr mentioned that inflation forecasts support more rate cuts and predicted another 0.5% cut by July. However, the market reaction was limited. Instead, comments from BOJ board member Takata gained more attention, causing NZD/JPY to gradually fall, reaching 86.35 in the New York market. The pair remains under pressure.
If NZD/JPY falls below the Tokyo session low of 86.17, it may test the yearly low of 85.15 again.
NZD/JPY Expected Range: 86.80 – 85.80
Note: This information does not guarantee profits. Make your own decisions when trading.