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The Monetary Policy Statement of the Reserve Bank of New Zealand is now available.
There are no projections available, therefore the RBNZ isn’t need to be prescriptive about when hikes will begin, but the following are the main points:
As expected, the RBNZ keeps the official cash rate at 0.25 percent…
MPC agreed to lower the current amount of monetary stimulus.
By the 23rd of July 2021, additional asset purchases under the large scale asset purchase (LSAP) program will come to an end.

Reduced Monetary Stimulus

In order to meet its medium-term consumer price and employment objectives, the Monetary Policy Committee agreed to reduce the current stimulatory level of monetary settings.
By July 23, 2021, the Reserve Bank will stop making new asset purchases under the Large Scale Asset Purchase (LSAP) program. The Official Cash Rate (OCR) will remain at 0.25 percent, while the Funding for Lending Program will remain unaltered.

NZD/USD Price Analysis: According to the prevent analysis, NZD/USD Price Analysis: Bears are looking for a daily extension to the negative below 0.6920; from a technical standpoint on the daily chart, the focus was on the downside:

However, the first reaction is to make an offer…

This leaves the chart with an excessively stretched W-formation and the possibility of a triple top:

On the daily chart, this creates the possibility of a trapped market scenario as follows:

For the remainder of the week, the Consumer Price Index data will be released on Friday, followed by the critical Q2 labor market statistics in three weeks./nRead More

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