Chance to Grab 50+ PIP Movement In NZD Parity as New Zealand’s Interest Rate Decision Due Tomorrow; Nov 10, 2020
New Zealand Official Cash Rate Decision & Monetary Policy Statement
New Zealand will publish Interest Rate Decision along with Monetary Policy Statement at 0100 GMT/0630 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. Monetary Policy Statement provides valuable insight into the bank’s view of economic conditions and inflation – the key factors that will shape the future of monetary policy and influence their interest rate decisions.
These will be the first meeting after the recent elections in New Zealand, which confirmed Jacinda Ardern winning a second term. Majority traders expect RBNZ to hold interest rates to 0.25 pct but there are chances for a surprise rate cut as well. Secondly, the tone of the monetary policy statement will decide the further direction of the NZD, will it be hawkish or dovish?
Let’s see how NZD has reacted during the previous data release:
NZD/USD: The Kiwi trades flat ahead of interest rate decision due on Nov 11. The pair made intraday high at $0.6840 and low at $0.6809 mark. Key resistances are seen at $0.6840, $0.6867, $0.6910 and $0.6948 mark respectively. Alternatively, a consistent close below $0.6819 will drag the parity down towards key supports around $0.6783, $0.6750, $0.6690, $0.6610, $0.6578 and $0.6527 mark respectively.
Take a look and do trade wisely!