2022-08-30 • Updated
The Reserve bank of New Zealand holds a meeting on Wednesday at 3:00 MT time. As usual, we await an update on the monetary policy and interest rate. Currently, the regulator keeps the rate at 0.25%. Analysts don’t expect any change to it, given current performance of New Zealand’s economy. Still, a dovish surprise is seen as a possible outcome.
New Zealand has been showing pretty impressive post-Covid results. The country successfully handled the pandemic and released better-than-expected inflation figures for the fourth quarter of 2020 (0.5% vs. the forecast of 0.2%). These facts diminished the need in negative interest rates and took the NZ economy on track to a quick recovery. Still, the country has only just started the vaccination process, and the travel industry remains under pressure. Additionally to that, the RBNZ does not like rising bond yields and surging kiwi. The New Zealand dollar is trading at the highs of 2018 against the US dollar. Combined with the booming housing market, skyrocketing NZD worries policymakers.
Thus, the RBNZ may try to hold rising kiwi by highlighting existing risks from closed borders and late vaccination.
According to JP Morgan analyst, "We’ll hear from the RBNZ tonight and the risk for me is a dovish surprise, I will be looking to be short NZD into the meeting”
Another problem that might be in the focus of the RBNZ board is the QE limit. The bank might have bought as many government bonds as permissible. That’s why it might need to take unusual actions during the upcoming meeting.
The kiwi has been implementing a bullish pattern. Right now, it is trading near the resistance at 0.7350. If the RBNZ provides a dovish surprise, the pair will slide to 0.7150 with a high potential of a breakout. The next support will lie at 0.7010. If the resistance at 0.7350 is broken, the next key level will lie at 0.7430.
The Reserve Bank of New Zealand surprised the markets again by refraining from raising interest rates a day after the country announced a nationwide lockdown due to multiple covid19 cases in the country…
Reserve Bank of New Zealand will likely deliver up to two interest rate hikes before the end of the year and many more news!
What should the AUD traders expect from the RBA meeting?
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
|
