Today traders await the European Central Bank to make a policy statement at 14:45 MT (GMT+3).
Will the RBNZ support the kiwi?
The New Zealand interest rate is announced on Wednesday at 05:00 MT time.
Instruments to trade: NZD/USD, AUD/NZD, NZD/CHF, EUR/NZD
The interest rate in New Zealand was reduced to 0.25% in March in response to the virus and has been kept steady at this level since then. As the second wave of the virus hit the country after the lockdowns were lifted, the restrictions had to be imposed once again. That affected the consumer and business activity in view of the cloudy recovery. While the quantitative easing measures have been undertaken, the Bank’s board advised that they don’t rule out a further reduction in the interest rate as the outlook is gloomier than expected and the Bank is running out of instruments to stimulate the economy. That’s why the announcement coming this week is pretty crucial in understanding the course of the RBNZ and the near-term economic future of New Zealand. Positive tones will boost the NZD while a dovish stance will press it to the downside.
- If the RBNZ’s tone is hawkish, the NZD will rise.
- If the RBNZ’s tone is dovish, the NZD will fall.
Oil dropped to the lows unseen since late May. Bitcoin has dropped below $30,000, while gold has reversed up from a dip under $1,800.
Moderna rocketed after an announcement that it is going to join the S&P 500 index. The New Zealand dollar surged after the nation’s inflation surpassed the central bank’s target level.
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!