New Zealand Dollar Loses Ground Vs The Greenback After Yellen’s Speech, Markets Await RBNZ
New Zealand dollar tumbled for the third day in a row versus its American counterpart ahead of the RBNZ’s monetary policy meeting scheduled later in the day. The greenback was supported strongly amidst mounting expectations that the U.S. Federal Reserve will raise interest rates for the third time at the end of this year.
The Kiwi lost more than 0.2 percent to trade at 0.7192 dollar in European trading session. The Federal Reserve Chair Janet Yellen on Tuesday echoed her colleague – New York Federal Reserve President William Dudley’s comments that the central bank needs to continue gradual interest rate hikes despite uncertainty about the path of inflation.
While Dudley claimed that factors depressing inflation are “fading” and the U.S. economy’s fundamentals are sound, Yellen said it would be “would be imprudent to keep monetary policy on hold until inflation is back to 2%,”
Following Yellen’s speech, the chance that the Fed will raise borrowing costs in December rose to 76 percent. Later on Thursday, the Reserve Bank of New Zealand is due to hold a policy meeting and is expected to leave interest rates unchanged at 1.75%. However, investors will look for fresh hints on the bank’s future policy decisions.
Sell Stop at 0.71800, Take profit at 0.71400, Stop loss at 0.72000