The Currency Scene:
News, Events, and Stories about currency from around the world.

Trading the News: Reserve Bank of New Zealand (RBNZ) Interest Rate Decision

  • Reserve Bank of New Zealand (RBNZ) to Hold Official Cash Rate at Record-Low of 1.75% at Governor Adrian Orr’s First Meeting.
  • NZD/USD[1] Risks Further Losses as Lower-Highs Persist. Relative Strength Index (RSI) Starts to Deviate with Price.
Image of RBNZ expectations

The Reserve Bank of New Zealand (RBNZ) interest rate decision may keep NZD/USD under pressure should Governor Adrian Orr & Co. stick to the status quo and endorse a wait-and-see approach for monetary policy.

More of the same at Governor Orr’s first meeting is likely to sap the appeal of the New Zealand dollar[2] as the central bank remains in no rush to lift the cash rate off of the record-low, and the RBNZ may continue to strike a cautious tone amid the ongoing slack in the real economy.

However, a material shift in the forward-guidance for monetary policy may spark a bullish reaction in NZD/USD as it boosts bets for an imminent rate-hike, and the central bank may change it tune throughout 2018 as ‘inflation is forecast to trend upwards towards the midpoint of the target range’ over the medium-term. Sign up and join DailyFX Currency Strategist Ilya Spivak LIVE [3]to cover the RBNZ interest rate decision.

Impact that the RBNZ rate decision has had on NZD/USD during the last meeting

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

Read more from our friends at Daily FX:

Pin It