RBNZ Interest Rates decision today is expected to hold off from cutting interest rates until it can get a better steer on the inflation outlook….
5:00pm (NY Time) RBNZ Interest Rates Decision Forecast 2.00% Previous 2.00%
DEVIATION: 0.25% (BUY NZD 2.25% / SELL NZD 1.75%)
The Trade Plan
RBNZ Governor Graeme Wheeler is expected to keep the official cash rate at 2.00% when he reviews monetary policy on this meeting, according to a Reuters poll of economists; however, in the event that Governor Wheeler surprises the market either by keep rates unchanged or cut by 0.25%, we should see an immediate strong volatility in the NZD which is a great opportunity to spike trade NZD.
For more information on my trading methods, please read: 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.
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.
The OCR (Official Cash Rate or RBNZ Interest Rates) influences the price of borrowing money in New Zealand and provides the Reserve Bank with a means of influencing the level of economic activity and inflation. An OCR is a fairly conventional tool by international standards.