Kiwi jumps more than 1% after RBNZ surprise decision

The New Zealand dollar rose against its US counterpart today, following the unexpected decision by the RBNZ to keep the interest rate.

The Reserve Bank of New Zealand (RBNZ) kept the interest rate at 1.00% unchanged, beating forecasts of a cut by 25 basis point to 0.75%. 

The RBNZ noted that accommodative monetary policy should be maintained until the the world economic arena becomes more clear, especially regarding the US-China trade war.

President Donald Trump said yesterday that since China’s entrance into the World Trade Organization in 2001, it has manipulated the United States.

Trump blamed the former US presidents for allowing and tolerating the Chinese unfair trade practices, however, he said that he expects signing the first phase of the final trade agreement with China very soon.

Back to trading, NZD/USD rose by 1.2% to 0.6408 as of 17:47 GMT, with an intraday high of 0.6417 and a low of 0.6328.