The Fed Chair Jerome Powell will testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee on June 22-23 at 17:00 GMT+3.
Will New Zealand’s Central Bank Boost the NZD?
What will happen?
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3. After that, the head of the bank will hold a press conference.
Why is it important?
In the third quarter of 2022, the inflation rate of New Zealand increased by 6.9%. It was the highest gain since the second quarter of 1990. The Reserve Bank of New Zealand had already begun its tightening cycle last year, and it pushed the interest rate to 1.5% in April. Now, analysts expect the central bank to boost the rate by 50 basis points to 2%. Moreover, Governor Orr’s comments on a further tightening step will make the NZD volatile.
Last time, NZDUSD started to rise right before the rate hike, but it fell back, following the pair's downtrend. A scalper could earn around 100 points on the retracement. A 1-lot trade would have brought a profit of $100.
How to trade on the RBNZ interest rate decisions?
Follow the interest rate announcement and make your trading decisions based on it.
- If the RBNZ raises the interest rate by more than 50 basis points, the NZD will rise.
- If the RBNZ raises the interest rate by 50 basis points, the NZD will make a short-term spike but then return to its previous levels.
- If the RBNZ doesn’t make a rate hike, the NZD will fall.
Instruments to trade: NZDUSD, NZDJPY, NZDCHF
The US Institute for Supply Management will release ISM manufacturing PMI on July 1, 17:00 GMT+3.
The United States Bureau of Economic Analysis will release monthly Personal Consumption Expenditures (PCE) on June 30, 15:30 GMT+3.
The governor of the Bank of England, Andrew Bailey, will hold a speech on June 29 at 15:30 MT time (GMT+3).