The NZD/USD pair jumped beyond 1% in today’s trading after the Reserve Bank of New Zealand surprised the market. In a bold move, the RBNZ announced earlier today that it will hold on to current rates.
The kiwi immediately surged against the greenback and other currencies following the RNZD statement.
Traders were caught off guard by the decision of the bank to hold on to its official cash rates of 1%. Aside from the New Zealand dollar’s gains, the wholesale interest rates also spiked after the OCR announcement.
Traders were initially expecting the central bank to ease its rates. But the bank chose to hold, saying there was not any urgency to ease its OCR.
Traders immediately focused on the NZD/USD trading pair as it rapidly leaps beyond expectations. The pair started the month roughly as it saw continuous losses in sessions.
Today’s rebound could push the NZD/USD trading pair beyond its resistance. The pair went up by 1.10% or 0.0070 points in today’s trading sessions.
The kiwi to the greenback exchange rate is currently trading at $0.6399 this Wednesday’s sessions. The pair has also climbed from ranges $0.6330 to as high as $0.6416 in trading sessions.
The Kiwi’s Rally
The unexpected decision also boosted the New Zealand dollar against other currencies such as the CNY, AUD, and JPY.
Aside from the NZD/USD trading pair, the AUD/NZD was also closely watched by the market.
The AUD/NZD pair plunged 1.03% or 0.0111 points in sessions. The pair is currently trading for NZ$1.0690, jumping lower from its last close of NZ$1.0801.
Meanwhile, the NZD/CNY pair went up by 1.23% or 0.0543 points. The pair presently trades for ¥4.4888, edging higher from its previous close of ¥4.4345.
Lastly, the NZD/JPY exchange rate rose 1.10% or 0.76 points in trading sessions. The NZD JPY pair now exchange for ¥69.75 and has extended its gains from ¥68.92 to ¥69.91.