Kiwi Plunged After Rate Cut Release

The New Zealand Dollar dropped  after the Reserve Bank of New Zealand has cut its Official Cash Rate.  The OCP was reduced by 25 basis points to 2.75 percent as expected mainly due to the sharp decline in export prices , the fall In the exchange rate and the slowdown of construction work in Canterbury.

The Reserve Bank Governor Graeme Wheeler said that a large drop in the Chinese economy could have a negative impact on New Zealand, which highlighted the growing fears among investors of a sharp slowdown in China.

The Kiwi fell from 0.6405 to 0.6256.

The news was expected and actually NZD/USD rallied during the whole week.
Through this morning the drop continues and NZD is rapidly heading towards its weekly low.

                              NZD/USD 5 min chart