RBNZ Interest Rate Decision
The Reserve Bank of New Zealand will declare its official Cash Rate decision tomorrow at 0200 GMT/0730 IST. Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future. The RBNZ Governor decides where to set the rate after consulting senior bank staff and external advisers. Along with it Rate Statement is among the primary tools the RBNZ uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions.
During tomorrow’s RBNZ meet, no changes to key interest rates are expected. RBNZ has made it clear that “if required, they are prepared to tighten “lending restrictions further” if house prices do not ease. Let’s wait what will come out from the RBNZ’s Policy Meet.
Let’s see how NZD has reacted during the previous data release:
NZD/USD: The Kiwi trades in rigid boundaries against U.S. dollar since April 15, 2021. The pair made intraday high at $0.7250 and low at $0.7203 mark. The key hurdles are seen at $0.7287 and $0.7140 mark. A sustained close of either side on a day chart will provide further directions to the parity.
Key Resistances: $0.7250, $0.7287, $0.7335, $0.7368, $0.7401
Key Supports: $0.7200, $0.7178, $0.7140, $0.7111, $0.7098
Take a look and do trade wisely!