AUTOREFRESH 
NZ raises rates by 25bps: Buy the rumour, sell the fact
By Sean Lee || July 28, 2010 at 22:03 GMT
|| 2 comments || Add comment
As we reported yesterday, a Bloomberg survey of 14 economists unanimously predicted this mornings 25 bps rate rise to 3.00%. The NZD/USD fell 70 pips immediately after the announcement and has been unchanged for the last hour at .7210. AUD/NZD is back above hourly resistance at 1.2350.
(Edit) Further hikes are expected to be more gradual and hence the sell-off in the NZD.
thanks
I remember also a good selloff after tha latest AUD rate increase
maybe that indicates the last rate increase for NZD also.
in that case I think investors worry about growth prospects and moved their funds elsewhere.
Usually an increase in interest rates will tend to raise the exchange rate.