NZD pairs could provide a lot of new trading opportunities as the RBNZ is set to announce their rate hike decision later today.
A rate hike of at least 25bps seems almost certain given recent economic data coming out of New Zealand, but traders may have already priced this expectation into the market. However, with unemployment at a record low and inflation forecasts being revised even higher, there has been growing speculation that the RBNZ could actually announce a 50bps hike.
AUD/NZD is one pair that highlights NZD’s strength of late, but the pair would likely require a 50bps hike in order to retest support at 1.03 and potentially break lower.
Either outcome could result in big moves for the Kiwi currency depending on how the market responds over the remainder of the week.
A rate hike of at least 25bps seems almost certain given recent economic data coming out of New Zealand, but traders may have already priced this expectation into the market. However, with unemployment at a record low and inflation forecasts being revised even higher, there has been growing speculation that the RBNZ could actually announce a 50bps hike.
AUD/NZD is one pair that highlights NZD’s strength of late, but the pair would likely require a 50bps hike in order to retest support at 1.03 and potentially break lower.
Either outcome could result in big moves for the Kiwi currency depending on how the market responds over the remainder of the week.
