A1 Trading Company

Ticker tape by TradingView

February 22, 2022

RBNZ Is Now Doing This

Frank Cabibi

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.

Combatting Inflation

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.

https://tradingeconomics.com/new-zealand/consumer-price-index-cpi

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.

3 Pairs To Trade

AUDNZD (Short Bias)

RBNZ is now doing this

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.

NZD/JPY (Long Bias)

RBNZ is now doing this

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 (Long Bias)

RBNZ is now doing this

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.

A1 Edgefinder

Smart Money Tracker
See where big money is flowing with the A1 Edgefinder's smart money tracker! With one click, see where the biggest money flows are entering and exiting through COT data.

10% off code: 'READER'

GET ACCESS NOW

VIP discord

Trade Alerts, Strategies, Chatrooms & more!

10% off code: 'READER'

LEARN MORE
What To Take Away From Powell's Remarks

Today, Fed chairman Jerome Powell spoke on the labor market and inflation. While we don't know what the future holds for the equities and currency market, we can derive certain conclusions from investors' interpretations. Here are some powerful takeaways from Powell's remarks this afternoon. Key takeaways Market Impact This caused the dollar and equities to […]

Read More
What To Expect From Today's FOMC

Today at 2:00 pm EST, the Fed will announce their latest interest rate decision. Estimates suggest a smaller hike of 25 basis points this time around. Here are some things to consider before the FOMC decision later today: The Fed has struggled to tighten their grip on inflation without causing too much disturbance in the […]

Read More
The Art of Not Trading

With the holiday season lingering on and a new year on the cusp of arrival, traders may glance at the calendar and notice there is not much economic news to anticipate on Friday to cap off a light week. In situations like these where there can be lulls in bullish and bearish momentum due to […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
VIP
Menu
homesmartphonelaptopmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram