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    NZD/USD: The price of dairy products and decisions by the Central banks on 18.03.2016

    Volatility in the pair NZD/USD was high this week. Following unexpected decline in the interest rate by 0.25%, up to 2.25% last Wednesday, the NZD fell in the market.

    RBNZ decided to take this measure in fear of deterioration in the prospects of global economy and decline in inflation expectations in New Zealand.

    At the dairy auction on Tuesday the price of dairy products fell by 2.9%, due to which the pair NZD/USD fell by 40 points.

    The pair rose on Thursday 16 March after the decision of the US Fed not to raise interest rate in the USA. In the comments after the meeting the bank has lowered forecast of further tightening of monetary policy, and this news caused decline in the USD all over the market.

    Within two days the pair NZD/USD rose by 250 points, reaching strong resistance level of 0.6860.

    By the end of the trading week the pair NZD/USD can fall due to closing long positions for the pair.

    Economic calendar is uneventful today. By the closing of the trading day today the pair can reach the level of 0.6770. Further movement direction in the pair will be determined by the events of the next week.

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