Kiwi lower into NZ central bank rate decision.
NZD/USD traded lower ahead of the Reserve Bank of New Zealand’s key interest rate decision due Wednesday morning local time, or tonight New York time. Key support seen at 63.00
The New Zealand dollar fell in its local market as traders bet on a rate cut by the Reserve Bank of New Zealand (RBNZ) a decision about which will be announced at 9pm New York time today. New Zealand is the first world forex market to open, with trading about 30 pips lower in volatile trade at the open.
Downward pressure in NZD/USD has been overwhelming in recent days ahead of a much anticipated interest rate decision by the RBNZ. Kiwi has fallen over 150 pips in the last seven trading sessions, trading around 63.40 early in New York action.
Traders betting on a rate cut
Traders appear to be betting heavily on a rate cut despite indications from the forward interest rate markets that the odds of such a move are substantially less, about 60% late last week, in the wake of improvement in China/US trade tensions, which has sent world stock markets soaring and brightened the economic outlook worldwide.
Still, expectations appear to be for a 25 basis point cut to 0.75%. The US Federal Reserve has put its own easing efforts on hold, partly due to easing trade tensions.
In August, the RBNZ surprised markets by lowering its key overnight money rate by a larger than expected 50 basis points.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
