Trading a News: Reserve Bank of New Zealand (RBNZ) Interest Rate Decision
The Reserve Bank of New Zealand (RBNZ) assembly might do small to boost a seductiveness of a New Zealand dollar as a executive bank is widely approaching to keep a executive money rate (OCR) during a record-low of 1.75% in August.
The RBNZ might continue to validate a wait-and-see proceed for financial process as ‘the new weaker GDP outturn implies marginally some-more gangling ability in the economy than we anticipated,’ and Governor Adrian Orr Co. might continue to tame expectations for aloft seductiveness rates as officials disagree that ‘the best grant we can make to maximising tolerable employment, and progressing low and fast inflation, is to safeguard a OCR is during an expansionary spin for a substantial period.’ In turn, some-more of a same from a RBNZ might furnish a bearish greeting in NZD/USD generally as a Federal Reserve stays on march to serve normalize financial policy.
However, like a Reserve Bank of Australia (RBA), an astonishing change in a RBNZ’s forward-guidance for financial process should worsen a seductiveness of a New Zealand dollar, with a collection of hawkish tongue expected to fuel a new miscarry in NZD/USD as it encourages bets for aloft seductiveness rates. Sign adult and join DailyFX Currency Strategist Ilya Spivak LIVE for a broader contention on stream themes and intensity trade setups!
Impact that a RBNZ rate preference has had on NZD/USD during a prior meeting
June 2018Reserve Bank of New Zealand (RBNZ)
NZD/USD 10-Minute Chart
To no surprise, a Reserve Bank of New Zealand (RBNZ) kept a executive money rate (OCR) during a record-low of 1.75% in June, with a executive bank observant that it is ‘well positioned to conduct change in possibly direction – adult or down – as necessary.’ The executive bank went onto contend that a ‘he new weaker GDP outturn implies marginally some-more gangling ability in the economy than we anticipated,’ and it seems as yet Governor Adrian Orr Co. will hang to a sidelines over a entrance months as officials note that ‘the best grant we can make to maximising tolerable employment, and progressing low and fast inflation, is to safeguard a OCR is during an expansionary spin for a substantial period.’
Despite a singular greeting to a RBNZ, NZD/USD struggled to reason a belligerent following a meeting, with a sell rate slipping behind next a 0.6800 hoop to finish a day during 0.6757. Learn some-more with a DailyFX Advanced Guide for Trading a News.
NZD/USD Daily Chart
- Keep in mind, a broader change in NZD/USD function appears to be holding figure as both cost and a Relative Strength Index (RSI) bluster a bearish formations from progressing this year, and a miscarry from a 2018-low (0.6688) might accumulate gait once a sell rate breaks out of a range-bound cost movement from progressing this month.
- The fibre of unsuccessful attempts to break/close next a 0.6710 (61.8% expansion) to 0.6720 (61.8% expansion) region raises a risk for a pierce behind towards 0.6710 (61.8% expansion) to 0.6720 (61.8% expansion, with a near-term opinion capped by a former-support section around 0.6820 (23.6% retracement) to 0.6870 (78.6% expansion).
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— Written by David Song, Currency Analyst
Follow me on Twitter during @DavidJSong.