NZD fell after RBNZ decision to leave interest rates at 1.75% by 2020

RBNZ left the base interest rate unchanged at 1.75%. In addition, the central bank confirmed its intentions to leave rates low until the end of 2019. We can expect interest rates to rise in the middle of 2020 or beyond.

Regarding economic growth, the bank expressed positivism.

- Growth slowed in the first half, but we expect it to stabilize by the end of the year.

- Healthy global growth and cheap NZD support the country's exports.

- Low rates support business and promote lowering unemployment.

- Tightening of the labor market is close to the maximum sustainable level.

- There are also the first signs of a rise in core inflation.

Government spending and investment are also expected to rise.

- Housing construction and household spending remain stable.

Technically, the NZD/USD price movement remains to overcome only one support, after which the path to 0.6340 remains clean. A break below the current support band, formed by not very strong levels, will boost the pair's negativity, and given RBNZ's long-term intentions, we can safely look for good short-range upside correction. Entry short of current levels remains high risk.

We are waiting for the RBNZ press conference at 01:00.

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