The Regional Bank of New Zealand is set to raise interest rates on the kiwi today. Here are some reasons why the RBNZ is now doing this 25bp rate hike plus pairs you would want to trade.
New Zealand's 1-3% target inflation rate target is still way out of reach as CPI jumped another 6 points q/q. Below is a chart of the New Zealand kiwi's CPI from January 2019 to January 2022.
Although this seems bad for the currency, the rest of the world is in the same boat. NZD and GBP are the only countries that have taken a measurable stance towards combatting inflation so far. So, that 1-3% inflation target range will likely be reached before other countries can.
AUDNZD is looking like one of the pairs to be shorting right now as everyone anticipates the bank rate tonight to change from .75% to 1% in New Zealand. Support lies at the 50 DMA and lower at the 1.05900s. These two levels could serve as take-profit points. This reversion in momentum looks like the start of a down trend on the 1D timeframe.
NZDJPY just broke above a long term falling trend line starting in October from last year. A close above this level would suggest further upside and probably a test on the 200 DMA.
NZD/USD continues to make higher highs and lows on the 1D timeframe. The pair is now up to the 50 DMA for a test. Further resistance sits above around .68600.
Just before the scheduled shutdown at 12:01 am on Sunday, Congress voted to extend the deadline for another 45 days. Yields jumped higher to above 5.1% which has remained elevated for some time. As we enter an historically bullish month for the indices, here are some setups on dollar, gold and index setups EdgeFinder Analysis […]
GDP numbers came in lower than expected in the US, marking the third straight drop in economic output. This is usually good news for the stock market indices and gold, however, bond yields continue to hold up above 5.1%. Here are some potential trade setups for both dollar and index longs depending on how the […]
Hi, I’m Nick! I am the founder of A1 Trading, market analyst, YouTuber, and creator of the EdgeFinder software tool. I caught a huge winner on USoil with the help of the EdgeFinder! In this article, I’ll walk you through my thought process behind the trade and how I found this crazy runner! Finding My […]
