Ticker tape by TradingView

July 12, 2022

Should You Buy Kiwi Before Rate Decision?

Frank Cabibi

AUD and NZD is stronger today as the RBNZ rate decision is to come out later today at 10:00 p.m. EST. Let's see a forecast on the kiwi and how it fares compared to other currencies. Here are some reasons to be buy kiwi before then.

What To Expect

The kiwi hit a two-year low as the currency struggles with surging inflation and slower economic growth. This seems to be a common theme around the world as other major economies are going through the same contraction. However, we can look to interest rates.

Some countries are doing the same thing, but are not aggressive enough compared to economists. New Zealand's central bank is already the most combative against inflation with an interest rate of 2% already. Most major countries are struggling to bring it up any higher because of the economy.

buy kiwi
Kiwi cash rate

However, it seems that the RBNZ is taking up a similar philosophy to the Federal Reserve which is to fight inflation at all costs. This means that the kiwi's interest rate is going to continue to rise regardless of what happens to the economy in the short term. In other words, if unemployment rises, so be it.

RBNZ plans to hike up their interest by another 50 basis points with rumored talks of doing another one in August. Rates are at 2% now, expecting to be 2.50% later today, and 3% in August.

Setups to Buy Kiwi

NZD/CHF

buy kiwi

NZDCHF climbs on the day in anticipation of a 50 bp hike. Price has significant resistance around 0.61683 and a falling trend line right above it that could likely get tested soon. Traders might try to price the kiwi at a higher level, so that level of resistance could be a good price target.

NZD/JPY

buy kiwi

This pair looks promising to the upside as price touches a rising trend line on the 1D timeframe. This level is also paired with a zone of support where a double bottom has formed. Traders might be looking to ride this trade to the top of the wedge of even a potential breakout to further highs.

EUR/NZD

buy kiwi

EURNZD comes down to a previous bottom on the 1D timeframe. Price could see a bounce from this support, however, a break under this level would result in a pretty considerable drop in value. Price could go as far as the 1.56000s on an extreme move.

A1 Edgefinder

FLASH SALE
Take 10% off the Edge finder using code "READER"
GET ACCESS NOW

want to see what we're trading?

Join The VIP Community!
Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Exclusive Trading Guides
Use Code "READER" for 10% OFF!
JOIN NOWJoin FREE Discord
A1 Trading Podcast
Why Global Recession Is Still Likely

On Friday this past week, the United Kingdom’s Office for National Statistics released the latest reports on the UK’s Gross Domestic Product (GDP), a means of measuring economic output. It was revealed that their economy grew by -0.6% month-over-month, and -0.1% quarter-over-quarter, which entails a contraction for both timeframes. Although these numbers are less disastrous […]

Read More
Has Everything Changed for Major Pairs?

This week the public received startling news: on Wednesday morning, month-over-month CPI (a proxy for inflation) in the United States had unexpectedly remained static, clocking in at 0% whereas a moderate 0.2% increase had been forecast. Core CPI (which excludes food and energy prices) likewise came in lower than anticipated at 0.3% month-over-month, while Thursday […]

Read More
Buy Kiwi Now Before Rate Hike

Next Tuesday, the RBNZ will announce their new official bank rate which is expected to be 3%, a 0.50% rise from July. This hike will make it the highest yielding major currency on the market. Here is why you should consider buying the kiwi before Tuesday's decision as well as some strong NZD long setups. […]

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