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RBNZ strikes a dovish tone, NZD/USD sells off

It's a known fact the RBNZ have been in neutral mode for some time and they're expected to maintain it for a considerable period of time. However, they struck a dovish tone in the statement tonight by saying upfront that the direction of their next move is equally balanced. They also lowered inflation forecast. NZD/USD spiked about 50 pips and added another 30 so far. 2017 low near 0.6775 is the next major target.
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NZD/USD marked down after the RBNZ decision

RBNZ left the official cash rate unchanged at 1.75%. Rate statement was neutral with no sign of an imminent rate hike. They expect the trade weighted exchange rate to ease over the projection period. That means lower New Zealand dollar - or less need for hikes. On equities they say: "Equity markets have been strong, although volatility has increased recently."
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