Economic indicators like GDP and business confidence are supporting another rate hike. It is expected that the RBNZ is raising its rates to 3.00% in April. However analysts got a mixed view on this issue.
Dairy product prices, which are one of new zealands most exported products have seen a straight fall by 16% since the latest decision which could lead to affect RBNZ growth forecast .
Another issue could be the current inflation which has printed weaker (0.3%) than the expected 0.5% for Q1 2014. The RBNZ expects generally an inflation of 1.9% by the end of this year. However some investors believe that RBNZ could place remarks on the strenght of the kiwi which likely will jawbone the currency.
Trading this event can be a tricky thing this time. However if another rate hike will take place, it could lead to another boost of the new zealand dollar against its counterparts. If the RBNZ refrains from rate hiking, this may probably lead to broad weakness for the NZD.
In this last period watching the kiwi chart you were able to note that profit taking at the .8700 handle was several times taking place.
If news are not your thing to trade, better check from the sidelines and enter the market in the comfort zone of a directional bias after the event.
Happy trading.
Dairy product prices, which are one of new zealands most exported products have seen a straight fall by 16% since the latest decision which could lead to affect RBNZ growth forecast .
Another issue could be the current inflation which has printed weaker (0.3%) than the expected 0.5% for Q1 2014. The RBNZ expects generally an inflation of 1.9% by the end of this year. However some investors believe that RBNZ could place remarks on the strenght of the kiwi which likely will jawbone the currency.
Trading this event can be a tricky thing this time. However if another rate hike will take place, it could lead to another boost of the new zealand dollar against its counterparts. If the RBNZ refrains from rate hiking, this may probably lead to broad weakness for the NZD.
In this last period watching the kiwi chart you were able to note that profit taking at the .8700 handle was several times taking place.
If news are not your thing to trade, better check from the sidelines and enter the market in the comfort zone of a directional bias after the event.
Happy trading.
