Stock indices S&P 500 and Nasdaq are falling for seven days in a row. The New Zealand dollar skyrocketed to almost two-years highs. Fed’s Powell held a meeting yesterday and said that the central bank wouldn’t tight its easing policy anytime soon.
NZD will be driven by RBNZ
What will happen?
The Reserve Bank of New Zealand will hold a meeting on Wednesday, April 14, at 05:00 MT. The central bank will announce its policy decision. Last time, it held its official cash rate at a record low of 0.25% during its February meeting and left the asset purchases unchanged. However, some were expecting the RBNZ to shift to a more hawkish stance – raise rates or decrease asset purchases. Who knows, maybe it will be the case this time.
How to trade on RBNZ’s statement?
- If the RBNZ is hawkish, the NZD will rise.
- If the RBNZ leaves everything unchanged and its tone is optimistic, the NZD may gain.
- If the RBNZ gives negative economic projections, the NZD may drop.
Instruments to trade: NZD/USD; NZD/CAD; NZD/JPY: AUD/NZD
On Wednesday, February 24, at 03:00 MT time, RBNZ will provide the Rate Statement and Press Conference.
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