Whats next for NZD and RBNZ

27.03.2019 / 08:06

Rating:

A rate cut by November 2019 has been fully priced in

Meanwhile, the OIS market is pricing in a 72.4% probability of a rate cut at the RBNZ's 7 August meeting. Prior to the meeting earlier today, markets only priced in a full rate cut on June 2020 so the shift to November 2019 is rather significant and given global economic worries - like China's soft data earlier - it will surely lead to calls for an August rate cut to intensify in the coming months.

With market participants growing considerably dovish on the RBNZ, the kiwi is being hammered today with NZD/USD still lurking near session lows around 0.6800. That said, the thing to consider here is that with markets being so pessimistic on the kiwi and the RBNZ now, any change in the dial for the global economy or domestic data in New Zealand will no doubt help the currency to recover back to the upside as shorts get squeezed.

Trader Aleksandar Kumanov

Read more:

RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.

WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.

Varchev Finance

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Disclaimer:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Whats next for NZD and RBNZ

London

Universal numbers