A divided Reserve Bank of New Zealand rate decision left the policy outlook conditional as FXStreet reported a second-day NZD/USD rebound ahead of U.S. jobs data due Nov. 6.
The central bank held its Official Cash Rate at 2.75% on Oct. 28, with four Monetary Policy Committee members supporting the decision and three favoring a rise to 3%. The vote showed disagreement over whether to tighten policy further at that meeting.
Annual inflation eased to 3.7% in the September quarter from 4.1% in the June quarter. Members who supported holding cited lower-than-expected inflation and a need to assess the effects of two recent rate increases. Those favoring another increase pointed to the risk that inflation could become entrenched. The committee said further tightening was likely to be needed, depending on the economic outlook.
FXStreet’s Nov. 5 update put NZD/USD at 0.5655 to 0.5660 in early European trading. The outlet said the pair had advanced for a second session after reaching about 0.5575 the previous day, which it characterized as a three-week low. Its four-hour chart analysis listed the 23.6% Fibonacci retracement at 0.5664 and the 100-period simple moving average at 0.5649.
EconoTimes previously covered the pair near 0.5600 ahead of U.S. jobs and services data. The U.S. Bureau of Labor Statistics has scheduled its October Employment Situation report for Friday, Nov. 6, at 8:30 a.m. ET. The RBNZ’s next scheduled Official Cash Rate announcement is Dec. 9.
