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.
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
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