In a world of low FX volatility on the majors, the interesting move through this week has been Aussie/Kiwi, with a further reversal seen overnight on the back of the latest rate decision and statement from the RBNZ. The move higher in the key rate to 3% was largely expected; the relatively hawkish tone to the accompanying statement was less anticipated. The Bank stated that inflationary pressures are increasing “and are expected to continue doing so over the next two years”. The statement as a whole suggests at least one more rate hike is on the horizon, but the bank also stated that they do not believe that the current level of the exchange rate is sustainable and removed the phrase “in the long-run” from the end of this statement between the March and April meetings. This could be taken as a sign that they are getting a little more uncomfortable with the level of the exchange rate, which is up 1% since the last meeting and up 0.35% after the rate decision overnight. Note that AUD/NZD has moved more than 1% lower, helped by the weaker tone to the Aussie after the latest inflation numbers this week. For today, main focus for the market will be the German IFO confidence data this morning, where headline reading is seen heading down a little from 110.7, but note that the key measure of German business confidence remains near a 3 year high. Bigger focus in the Eurozone and for the single currency is deflation risks and the ECB’s potential reaction to them, which will be a growing focus into the next ECB meeting in two week’s time. Further reading: German IFO Business Climate beats expectations – EUR/USD rises NZD/USD moves higher on second rate hike, upbeat RBNZ tone FxPro - Forex Broker FxPro - Forex Broker Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss. View All Post By FxPro - Forex Broker Daily Look share Read Next GBP/USD: Trading The British Retail Sales Apr 2014 Kenny Fisher 8 years In a world of low FX volatility on the majors, the interesting move through this week has been Aussie/Kiwi, with a further reversal seen overnight on the back of the latest rate decision and statement from the RBNZ. The move higher in the key rate to 3% was largely expected; the relatively hawkish tone to the accompanying statement was less anticipated. The Bank stated that inflationary pressures are increasing "and are expected to continue doing so over the next two years". The statement as a whole suggests at least one more rate hike is on the horizon, but the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.