- RBNZ largely expected to main the OCR unchanged at 1.75%.
- Fed's decision ahead of the event to overshadow RBNZ outcome.
The Reserve Bank of New Zealand is having its monetary policy meeting early Thursday's Asian session, largely foreseen to leave the Official Cash Rate (OCR) on hold, despite recent strong economic data. The current rate stands at 1.75%, and the market sees little chances of a change at least until the end of 2019 or the beginning of 2020.
In its August statement, Governor Adrian Orr repeated that the next move could be up or down, and offered a mild dovish statement. This time, however, markets are expecting a less-negative stance, but still far from hawkish. Most analysts think that policymakers could review the near-term inflation outlook to the upside. Nevertheless, the central bank will likely keep a cautious stance, and also repeat that overall monetary conditions will remain accommodative, maintaining a wait-and-see stance.
Ahead of the event, the US Federal Reserve will unveil its latest decisions on monetary policy, and market's reactions to the RBNZ will be clearly overshadowed by dollar's strength or weakness post-Fed. Unless the New Zealand Central Bank surprises big something highly unlikely, the NZD has little chances of appreciating on Orr & Co. and will only surge on prevalent dollar's weakness, should the Fed disappoint. Gains on a positive shift in the wording could exacerbate the move if the dollar is weak, while will probably be short-lived is the USD heads strong into the release.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD stays below 1.0800 after upbeat US data
EUR/USD stays under bearish pressure and trades slightly below 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold clings to strong daily gains above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.