Forex: NZD/USD collapses to 0.8200 after RBNZ decision

the New Zealand Dollar has reacted down after the RBNZ decision to leave unchanged its interest rate at 2.5%. The NZD/USD fell around 70 pips from the 0.8270 to test the 0.8200 level following the release. Currently the pair is trading at 0.8205.

"The overvalued New Zealand dollar is undermining profitability in export and import competing industries," says the bank in its official release. The RBNZ expects "to keep the OCR unchanged through the end of the year."