NZD/USD extends the corrective upside for the time being.

The New Zealand Dollar fell sharply against the Pound and other rivals Wednesday after the Reserve Bank of New Zealand (RBNZ) warned that it might have to cut its interest rate over the coming months.

RBNZ Governor Adrian Orr cited a decline in domestic spending and a further slowdown in global growth as risks to the outlook for inflation, which has long been below the midpoint of the 1%-to-3% target, as being behind what looks like a shift into an “easing” stance.

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