NZ CPI q/q | October 15, 2013 | Forex News Trading
NZ CPI is a quartely release, therefore it is very likely to surprise the market… RBNZ has been particularly bullish as of late, and a strong release would be what it needs to start a rate hike campaign, therefore I’d definitely pay close attention to this release, especially if we get an upward surprise.
5:45pm (NY Time) NZ CPI q/q Forecast 0.8% Previous 0.2%
DEVIATION: 0.3% (BUY NZD 1.1% / SELL NZD 0.5%)
The Basic Plan Our focus will be on the headline CPI number. If we get a better release of 1.1%, we should be looking to BUY NZD; if we get a lower release 0.5%, then we’ll see NZD move down. Usually if our BUY or SELL figures are hit, we could expect the market to move about 40~50 pips within the next 30~90 minutes.
For my news trading methods, please watch this 3-part instruction video: https://www.currencynewstrading.com/how-to-get-started-with-news-trading/
I’d recommend to use the Recommended Pairs from above as they are based on my CSM, which should provide the best combination of currency pairs to trade based on better/worse news… of course, you can also trade the default pair: NZDUSD.
[ffoscore currency=’NZD’]
Outlook Score Outlook score is derived from market sentiment, focus, and economic indicators for the currency. It represents the long-term trend of the currency and its market perception. In short, a strong Outlook Score means more long-term demand for the currency, and a weak Outlook Score is the opposite.
DEFINITION: “The Consumer Price Index (CPI) measures the rate of inflation (i.e., the rate of price changes) experienced by consumers when purchasing goods and services. A rising trend has a positive effect on the nation’s currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates to bring prices down. Higher interest rates attract foreign investment, thus increasing demand for the nation’s currency. CPI is one of the most closely watched indicators and will usually have a high impact upon release.”
Thanks,
