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.
Two surprises occurred this week from both central banks of Australia and Canada. Economists forecasted an unchanged discount rate, but the banks had other plans in mind. This caused a heavy positive move for AUD and CAD after reaction to the news. Here is what we are looking for in these types of pairs going […]
Over the past week, several news events paved the way of sentiment on monetary policy. Through the forest of mixed uncertainty, we can find the clearing of one asset that looks ready to take off. Gold has come back to a critical level, and it is up to smart money what happens next. EdgeFinder Analysis […]
Gold is up nearly half a percent today while USD down a third of one as of 10:18 am EST. As we wait for the upcoming and looming NFP numbers this Friday, we can assess the economic data we already have. EdgeFinder Analysis The stock market sighed in relief after the debt ceiling bill finally […]
