Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

NZD/USD: Rate Hike On The Menu

Published 03/12/2014, 12:16 AM
Updated 04/10/2024, 06:10 AM
NZD/USD
-

<span class=NZD/USD Daily" title="NZD/USD Daily" height="242" width="474">

NZD/USD is trading just below $0.8500. The pair’s moves will be limited by the $0.8500/8430 area ahead of the Reserve bank of New Zealand’s meeting on Wednesday: the RBNZ is expected to raise its benchmark rate by 25 bps to 2.75%.

Note that such outcome is now fully priced in as kiwi has strengthened by more than 3% this year. A very important thing will be what the central bank says in its statement about the future moves of the rate. In addition, NZD/USD is approaching heavy resistance at $0.8550 and $0.8585 ahead of $0.8675 and is close to overbought area.

As a result, if the RBNZ raises rates, we may expect a short-term spike in NZD/USD up to $0.8675 which will be quickly followed by the significant correction.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.