Actual: 2.5% Forecast: 2.5% Previous: 2.5%
The rate decision is often priced in the market so it tends to be overshadowed by the RBNZ Rate Statement which is focused on the future. 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.
UPDATE: RBNZ decided to leave rates unchanged but the accompanied statement mentioned a possibility for rates to move further lower. Combine that sentiment with a fresh renewed sell-off of NZD on a BUY on Rumor SELL on Fact type of market reaction, we saw some 70 pips of immediate drop on the NZD/USD pair. I waited for the drop and for the retracement, then I went in on a SELL NZD/USD trade that eventually netted me 20+ pips on Video, but I was able to pick up 30+ in my real account, while not missing a night out of delicious chinese dinner with my family…