NZDUSD Technical Analysis: Testing Key Support in RBNZ News
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Key Support & Resistance Zones
R: 0.6920 – 0.6970
S: 0.6680 – 0.6730
NZDUSD Breakout and stable 0.6670 level then touch 0.6720 level and more because Wednesday coming big news in NZD like : Official Cash Rate/ RBNZ Monetary Policy Statement/ RBNZ Rate Statement / RBNZ Press Conference etc. Very important news for NZD. NZD moving depend on this news . GBPNZD / EURNZD big move on this news minimum 150/250 pips moving. so carefully trade this time .
NEWS:
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The Reserve Bank of New Zealand’s (RBNZ) survey concerning second quarter 2019 inflation expectations showed the price pressure to remain mostly unaffected at 2.01% versus the previous post of 2.02%.
A monetary policy meeting by the Reserve Bank of Australia (RBA) could gain the immediate attention of the Kiwi traders as Australia is the largest customer of New Zealand. Also, it is expected that RBA’s rate-cut could be followed by the RBNZ’s rate change.
Kiwi gave little reaction to inflation expectations amid trade news.
RBNZ grabs the spotlight with GDT price index being an intermediate data to follow.
Comment:
It's better to have a better chance of cutting the nzd rate tomorrow.
So buy position is best technical point.
So buy position is best technical point.
Comment:
RBNZ Governor Orr and his new MPC will decide whether to cut rates or not.
An on-hold stance would trigger a short-lived bullish run as the market unwinds shorts.
The Reserve Bank of New Zealand will announce its latest decision on monetary policy this Wednesday. The central bank is expected to cut the official cash rate to 1.5%, fresh historical lows, from the current rate of 1.75%.
As expected, the RBNZ abandoned the neutral stance in its March meeting, calling for a move down amid "the weaker global economic outlook and reduced momentum in domestic spending," according to Governor Orr's own words. Mr. Orr has said that a rate cut this month was possible, but added it was a tough decision.
So, it´s up to Governor Orr and his new seven members´ MPC to decide whether it is premature to be easing monetary policy, in spite the market has already priced it in. That said, and as it happened with the RBA and the Aussie, the NZD may spike higher right after the decision, as speculative interest would likely unwind shorts. However, a sustained rally correlated solely to an on-hold decision in the current risk-averse environment seems quite unlikely.
In spite of the market's belief, there are chances that policymakers may decide not to move rates this month. RBA's decision is one of those. The other is that the latest New Zealand data suggest that business and investment confidence have improved. Nevertheless, inflation remains subdued, while the unemployment rate keeps rising.
An on-hold stance would trigger a short-lived bullish run as the market unwinds shorts.
The Reserve Bank of New Zealand will announce its latest decision on monetary policy this Wednesday. The central bank is expected to cut the official cash rate to 1.5%, fresh historical lows, from the current rate of 1.75%.
As expected, the RBNZ abandoned the neutral stance in its March meeting, calling for a move down amid "the weaker global economic outlook and reduced momentum in domestic spending," according to Governor Orr's own words. Mr. Orr has said that a rate cut this month was possible, but added it was a tough decision.
So, it´s up to Governor Orr and his new seven members´ MPC to decide whether it is premature to be easing monetary policy, in spite the market has already priced it in. That said, and as it happened with the RBA and the Aussie, the NZD may spike higher right after the decision, as speculative interest would likely unwind shorts. However, a sustained rally correlated solely to an on-hold decision in the current risk-averse environment seems quite unlikely.
In spite of the market's belief, there are chances that policymakers may decide not to move rates this month. RBA's decision is one of those. The other is that the latest New Zealand data suggest that business and investment confidence have improved. Nevertheless, inflation remains subdued, while the unemployment rate keeps rising.
2. A follow-through selling below the 0.6580 level will reaffirm the bearish bias and accelerate the slide further towards 61.8% Fibonacci expansion level support near the 0.6550 region.
3. Alternatively, a sustained recovery beyond 23.6% Fibo. level might negate the bearish outlook and prompt some near-term short-covering move towards 0.6650-55 supply zone.