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 Risks Further Losses as Lower-Highs Persist. Relative Strength Index (RSI) Starts to Deviate with Price.
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 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 to cover the RBNZ interest rate decision.
Impact that the RBNZ rate decision has had on NZD/USD during the last meeting
(1 Hour post event )
(End of Day post event)