New Zealand Dollar Rally Quashed amid Possible Pushback from RBNZ

The New Zealand Dollar weakened Friday after comments from the Reserve Bank of New Zealand (RBNZ) were said to have weighed on the Kiwi, as the bank appeared to push back against the market response to Wednesday's interest rate decision. 

The New Zealand Dollar was on Thursday seen giving back some of the gains acquired on the mid-week surprise decision by the Reserve Bank of New Zealand to leave interest rates unchanged, however near-term the currency is expected to remain relatively well supported.

The New Zealand Dollar outperformed its peers on global currency markets in mid-week trade after the Reserve Bank of New Zealand (RBNZ) surprised markets by opting to leave interest rates unchanged.

The New  Zealand Dollar weakened across the board on Tuesday as markets moved to price in a fourth 2019 interest rate cut from the Reserve Bank of New Zealand (RBNZ) although the prospect of a shift in the central bank's policy stance could boost the Kiwi on Wednesday. 

Analysts at New Zealand lender ASB say they see further New Zealand Dollar weakness in the coming week as they expect the Reserve Bank of New Zealand to cut interest rates again on Wednesday.

Studies of the GBP/NZD charts show the pair is range-trading after hitting a key chart level but that the dominant trend remains bullish and so there is a bias towards more upside.

The New Zealand Dollar was in recovery mode early in the Wednesday session as investors shrugged off a poor third-quarter jobs report but the nascent upturn could be scuppered next week if the Reserve Bank of New Zealand (RBNZ) responds to the report with an interest rate cut.

An optimistic mood amongst global investors mean the UK currency is losing ground against the likes of the New Zealand Dollar and South African Rand.