Trading the News: Reserve Bank of New Zealand (RBNZ) Interest Rate Decision
More of the same from the Reserve Bank of New Zealand (RBNZ) may generate fresh yearly lows in NZD/USD[1] as the central bank keeps the official cash rate (OCR) at the record-low and remains reluctant to normalize monetary policy.
The RBNZ seems reluctant to alter the forward guidance as inflation continues to run below the 2% target, and the central bank may keep the door open to further support the New Zealand economy especially as the growth rate slows to an annualized 2.7% from 2.9% in the last three-months of 2017[2]. In turn, a batch of cautious comments may fuel the bearish behavior in NZD/USD as it saps bets for a rate-hike in 2018.
However, an unexpected change in the forward guidance for monetary policy may curb the recent weakness in NZD/USD, with the pair at risk for a near-term recovery should Governor Arian Orr & Co. show a greater willingness to lift the cash rate off of the record-low. Sign up and join DailyFX Currency Analyst David Song LIVE[3] for a broader discussion on current themes and potential trade setups!
Impact that the RBNZ rate decision had on NZD/USD during the previous meeting
|
Period |
Data Released |
Estimate |
Actual |
Pips Change (1 Hour post event ) |
Pips Change (End of Day post event) |
|
MAY 2018 |
05/09/2018 21:00:00 GMT |
1.75% |
