RBNZ Assistant Governor Christian Hawkesby is quoted staying that the central bank is actively working on negative interest rates and funding for a lending program. Also, “inflation is likely to remain well below the target for three years.” Chief Economist Yuong Ha also noted that the central would rather be aggressive with stimulus, and do too much too soon than too late too little. The central bank is looking at tiering regime for negative rates plan.
NZD/USD drops notably today and it’s not looking at 0.6511 support. Break there will complete a head and shoulder top (ls: 0.6715, h: 0.6979, rs: 0.6658). In this case, we should at least see a deeper decline to 38.2% retracement of 0.5469 to 0.6797 at 0.6290, as a correction to rise from 0.5469 to 0.6797.
