#NZDUSD @ 0.61560 When is the RBNZ and how it could affect ?
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
Early Wednesday at 01:00 GMT market sees the key monetary policy decision by the Reserve Bank of New Zealand (RBNZ) amid hopes of another hawkish play by the New Zealand central bank.
RBNZ is expected to announce the tenth back-to-back increase in its benchmark interest rate, from 3.5% to 4.25%. In doing so, New Zealand’s central bank is up for the first 75 basis points (bps) of a rate hike.
Although the rate hike is mostly priced in, the quarterly Monetary Policy Statement and the press conference by RBNZ Governor Adrian Orr make the event crucial for NZD/USD traders, especially when global inflation fears abate. The stated event is at 02:00 GMT.
Ahead of the event, Australia and New Zealand Banking Group (ANZ) said,
On the same line, analysts at Westpac said,
Considering the market consensus, FXStreet’s Dhwani Mehta said,
NZD/USD remains sidelined around 0.6150 ahead of the key RBNZ announcements. Also increasing the pair trader’s anxiety are the scheduled release of the preliminary monthly activity data for November and Minutes of the US Federal Reserve’s (Fed) latest minutes
That said, early signals from the RBNZ have already confirmed a 75 bps increase in the Official Cash Rate (OCR) and the same may not please bulls apart from providing an immediate upside. Traders will be more interested in signals for the central bank’s future moves and hence the discussions over the OCR peak, as well as the quarterly economic projections, will be crucial for clear directions.
Technically, a clear break of the recent trading range between 0.6060 and 0.6200 appears necessary for clear directions. That said, a convergence of the 200-EMA and ascending trend line from October 13, around 0.5940, appears an additional important support to watch during the quote’s surprise downside.
NZD/USD portrays pre-RBNZ caution around 0.6150, FOMC Minutes eyed as well
RBNZ Interest Rate Decision Preview: NZD/USD – Buy the rumor, sell the fact on a 75 bps hike
The RBNZ interest rate decision is announced by the Reserve Bank of New Zealand. If the RBNZ is hawkish about the inflationary outlook of the economy and raises the interest rates it is positive, or bullish, for the NZD. The RBNZ rate statement contains explanations of their decision on interest rates and commentary about the economic conditions that influenced their decision.
[/s2If]
Join Our Telegram Group
