The Reserve Bank of New Zealand (RBNZ) will release its interest rate decision on September 23 at 10:00 (GMT+8). NZD/USD has weakened by about
150-pips with the overnight implied volatility recording 15.5%, the
highest reading since the August RBNZ meeting.To get more news about
WikiFX, you can visit wikifx official website.
The RBNZ will neither a make monetary policy statement nor hold a press
conference and is expected to keep its benchmark interest rate unchanged
at the record-low level with no more stimulus, despite the deep
recession in the economy.
RBNZ officials previously never showed any dovishness. Currently, the market of interest rate futures does not
price in a rate cut by the RBNZ until April next year. NZD's decline
looks mainly driven by traders' risk aversion.
Technically speaking, NZD/USD closed below its 50-day moving average while the
bearish MACD crossover also points to mounting downward pressure. The
New Zealand dollar could face renewed selling pressure if the RBNZ
doubles down on its jawboning efforts. Furthermore, NZD/USD could also
hasten the decline if the upcoming release of global PMI data from IHS
Markit disappoints markets and fuels risk aversion further.
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