RBNZ To Meet Overnight
The RBNZ meets tonight for its July MPR. While there will be no fresh forecasts or projections given at this meeting (they will come in August), the market will nonetheless be scrutinising the meeting for clues at to how the bank is likely to act, if at all, in August. The RBNZ has struck a more upbeat tone recently, despite reiterating that downside risks remain. With inflation rising firmly, however, there is a strong risk of the domestic economy overheating, which has increased RBNZ tightening expectations. With this in mind, traders will be paying close attention to this month’s policy statement where any mention of improving conditions and reduced risks will likely send NZD higher and any downplaying of the recovery and focus on residual risks will likely send NZD lower.
Where to Trade the RBNZ Meeting?
NZDCHF
The pair has been correcting lower within a bearish channel since the March highs. Following the break below the .6387 level, the pair is now fighting to reclaim the level. While above here, look for a break of the channel top and a move above the .6540 level with longs there able to target .6722 initially. To the downside, below the level, shorts can look for .6232 next.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.