With today's RBNZ interest rate expected to stay the same all ears will be listening to the statement for future movement. Given the current set up on the 1H timescale it may be an ideal entry. Wait for the break as we do not know what RBNZ will say and how the market will react.
I'll update this idea as it develops
This is not investment advice
Trainer & mentor
Employment is near its maximum sustainable level. However, core consumer price inflation remains below our 2 percent target mid-point, necessitating continued supportive monetary policy."
Blah, blah, blah. OCR has not been released yet.
Don't hold your breath. This IS investment advice :-)
However, the RBNZ did note that “on the upside, inflation could rise faster if firms pass on cost increases to prices at a greater extent”. The tone of the statement marks a dramatic escalation in dovishness by the RBNZ which had been keeping a more neutral tone recently. Comments to the likelihood of a rate cut have been effective in pushing NZD lower. Indeed, theycould also prompt a response from other central banks. This new change in policy guidance comes on the back of the RBA shifting its view. Previously, the RBA had forecast that its next move in rates would be higher. However, in light of the recent worsening in global growth, it ... (full story)