November 23: Heaven for Day Traders
This Wednesday will be heaven for day traders. A considerable number of events will make the market volatile. Don't miss it!
NZD Awaits RBNZ Statement
What will happen?
The Reserve Bank of New Zealand will make a policy statement on August 18 at 05:00 MetaTrader time (GMT+3). The bank will announce its decision on the interest rate and shed a light on its future monetary policy. Last time, the RBNZ held the cash rate at a record low of 0.25% and, more importantly, decided to end the emergency asset purchases by July 23. When the central bank raises rates or reduces asset purchases – it’s good for the currency. As a result, NZD/USD skyrocketed – look a the chart below! After that hawkish move, investors started expecting a rate hike in 2021 and the most optimistic ones – during this meeting in August. However, the rapid spread of the delta variant may ruin these plans. Therefore, the bank may increase rates in the next meetings: October 6 or November 24.
How to trade on the RBNZ Interest Rate Decision?
- If the RBNZ hints at the rate hike sooner than expected, the NZD will strengthen.
- On the other hand, negative forecasts and cautiousness around recovery will make the NZD weaker.
Instruments to trade: NZD/USD, NZD/JPY, AUD/NZD
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