#NZDUSD @ 0.63088 When is the RBNZ Interest Rate Decision and how it could affect ?
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Early Wednesday at 02:00 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, despite doves flexing muscles of late.
RBNZ is up for fueling the market moves with its 11th consecutive rate hike, expectedly worth 0.25%, during early Wednesday. The Interest Rate Decision will be accompanied by the RBNZ Rate Statement which can provide further details on the central bank’s next moves, making it crucial for the NZD/USD pair traders to watch.
Ahead of the event, Australia and New Zealand Banking Group (ANZ) said,
On the same line, analysts at the National Australia Bank (NAB) said,
Furthermore, FXStreet’s Dhwani Mehta said,
NZD/USD retreats from a seven-week high while portraying the pre-RBNZ consolidation around 0.6310 by the press time. The Kiwi pair’s latest pullback could also be linked to the corrective bounce in the US Treasury bond yields and the US Dollar after refreshing the multi-day low.
Earlier in the week, the RBNZ Shadow board backed the market expectations of witnessing a 0.25% rate hike but also mentioned the strain on demand the central bank’s rate hike offers. As a result, the Reserve Bank of New Zealand may announce a dovish hike to defend the policymakers from criticism.
Given the clear early signals of witnessing a 0.25% rate hike, the NZD/USD appears well-set to consolidate the latest pullback around the seven-week high. However, a negative surprise due to the natural calamity at home won’t hesitate to drown the Kiwi pair.
Apart from the interest rates, the economic forecasts and language of the RBNZ Rate Statement will also be the key for the NZD/USD pair traders to watch. That said, the bleak economic outlook and early signals for peak rates might tease the sellers despite the 0.25% rate hike announcement.
Technically, NZD/USD justifies the previous day’s upside break of the 100-DMA and a five-week-old ascending trend line, around 0.6300, to aim for the 61.8% Fibonacci retracement level of its February-March fall, around 0.6365.
RBNZ Interest Rate Decision Preview: Hawkish guidance yet again?
NZD/USD traders await the RBNZ
NZD/USD Price Analysis: Renews seven-week high above 0.6300 as RBNZ Interest Rate Decision looms
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.
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