NZD/USD: Trading The RBNZ Interest Rate Decision
Robert Henrik | Feb 22, 2022 04:40AM ET
Overall, NZD/USD is ranging across. The Reserve Bank of New Zealand (RBNZ) will be announcing its monetary policy today. It is expected that the central bank will be increasing interest rates by 0.25%.
If the RBNZ carries out a rate hike of 0.50%, NZD will likely be bullish. Also, the focus will be on the interest rate projection released in the quarterly monetary policy statement on whether any revisions have been carried out.
An upwards revision in the expected interest rate in the near future will likely lead to a bullish NZD. A press conference will be held, and during this time, volatility is expected in NZD.
Currently, NZD/USD is testing the resistance zone of 0.67100, and the next support zone is at 0.65400. Look for short-term selling opportunities of NZD/USD if it rejects the resistance zone of 0.67100 up until the announcement from the RBNZ.
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