NZDUSD. Reserve Bank of New Zealand Meeting (Rate Decision) 21 September 21:00 GMT

New Zealand’s economy is going through the opposite. The country’s economic stats are continuously improving, which is backed up by the latest GDP data, which – although still at a high level – is gradually slowing down.

Over the course of the last year and a half the NZRB have already cut the rates several times, and experts believe the practice could continue.

Dynamics of interest rate of New Zealand change between 2012 until now:

Should the refinancing and the interest rates indeed get cut, it might have a negative effect on the New Zealand dollar.  

NZDUSD chart:

Last week the rate broke the bottom line of the upward trend and according to the indicator of technical analysis “Awesome Oscillator” further downward rate movement is possible as the zero-line was breached.

What is more, there will be plenty of fundamental reports which might have an impact on the national currencies of these countries and the downward trend might accelerate.