The Reserve Bank of New Zealand has just announced that interest rates will stay the same for the third month in a row in December. This announcement is expected to drive some serious instability with regard to investor's decisions and will no doubt have an impact on the Forex currency exchange. Future policy decisions are not known and are coming off as brazen to many financial analysts who think that New Zealand should be more proactive about its economy. The Reserve Bank of New Zealand has also stated that they will continue to lower their economic projections for the country.
However retail spending has been increasing at encouraging levels, and the unemployment rate of the island nation has also been decreasing as well. The RBNZ could however become extremely involved with the nation's currency supply if inflation rears its ugly head as many analysts expect it will. The housing market in New Zealand is still on the rocks, leading many to wonder if the country will experience its own housing bubble similar to what happened in the United States several years ago.
Uncertainties regarding New Zealand's upcoming gross domestic product and non-farm income are leaving many traders on the edge of their seats. Pairing this the NZD with another stable currency such as the CAD would not bring in as much profit as, say the JPY but it would definitely be a safer move. In the long run the NZD is as it has been for several years now, a more or less stable currency that should be treated accordingly.