Thursday Forex Traders Money Market Update. 8th August 2019

Tuesday’s 3.9% official unemployment rate in New Zealand clearly didn’t impress the RBNZ, they dropped the official cash rate from 1.5% to 1% on Wednesday without any leading economists or analysts predicting it. The market expected a 0.25% cut however a 0.50% cut was unexpected and what gave traders inside investment banks and hedge funds even more reason to sell off the NZD were the comments within the statement that more rate cuts could be on the way.

The RBNZ said “Growth has slowed, and headwinds continue to strengthen. Lower interest rates are needed to support the economy. As we get new information about the state of the economy, we may need to change the Official Cash Rate (OCR) to ensure inflation returns to our target mid-point of 2 percent per year, and to support maximum sustainable employment.”

What the RBNZ delivered was a very dovish and downbeat assessment of the Kiwi and global economy with the last paragraph summing things up. “economic growth could slow further over the next year if the global economy slows by more than we expect, reducing demand for our products. Should this happen, we can lower interest rates further to provide more support for employment and to ensure inflation remains around 2 is a professional trader and successful investor who has a strong focus on education.

He is a regular Sky News Money Channel Guest and one Australia’s most awarded and respected financial experts, and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar.

Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account.

Andrew, a regular key-note speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).

Currently Andrew is living his dream life on the Sunshine Coast with his loving wife and three children.