1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Forex Signal (Wed June 8 2011, 5:00pm NY Time EST) - NZ Interest Rate

Discussion in 'Current Forex Trading Signals' started by Henry Liu, Jun 7, 2011.

  1. Henry Liu

    Henry Liu Former FPA Special Consultant

    Joined:
    Jul 5, 2010
    Messages:
    473
    Likes Received:
    0
    RBNZ (Reserve Bank of New Zealand) will be releasing its interest rate decision today and it is widely expected that Gov. Bollard will decide to continue on the post-quake reconstruction timeline. No rate hikes is expected today...

    5:00pm (NY Time) RBNZ Rate Decision Forecast 2.50% Previous 2.50%
    ACTION: NZDUSD SELL 2.25% / BUY 2.75%

    The Trade Plan
    Current forecast from economists surveyed by Bloomberg agree that RBNZ is likely to leave the official rate at 2.5% during this meeting; however, in the unlikely event that Gov. Bollard surprises the market and hike rates to 2.75% or higher, we should see an immediate strong demand in the NZD which is a great opportunity to spike trade BUY NZD/USD.

    However, if RBNZ cuts rate to 2.25% or lower, we should SELL NZD/USD and see it fall back towards former resistance around 0.8000.

    For more information on my trading methods, please read:
    Henry Liu's Trading Method

    The Market
    Recent rise in NZD versus other major currencies, especially against USD and JPY, has provided room for RBNZ to delay rate hike decisions. As a matter of fact, Bollard may talk down speculation as the region still copes with the earthquake in Christchurch earlier this year...

    With higher trade balances and optimistic employment sector, market is right in speculating a rate hike in the near future, but just not this meeting.

    Additional Thoughts
    NZD is a very slow moving currency and for a news of this caliber, decent retracements are not likely. Considering the expectation for this release, if we do get an “as expected”, market will be focusing on the accompanied statement. Which im my opinion should be somewhat bearish...

    Also 5:00pm market is usually low in liquidity. Unless we get a surprise, it’s probably best to stay out…

    Pre-News Considerations
    There is no pre-news trading for this release, but pending on the accompanied statement, we could see some weakness in the NZD.

    Historical Chart and Data for NZ Interest Rate



    Thanks,


    [​IMG]
     
    #1 Henry Liu, Jun 7, 2011
    Lasted edited by : Sep 8, 2016
  2. bahtaylah

    bahtaylah Recruit

    Joined:
    Jun 3, 2011
    Messages:
    1
    Likes Received:
    0
    news releases

    Is there a website to find out the "actual" release figures are right away. For instance if NFP data is to be released at 12:00. Is there a website to go to at 12:00 to get the "actual" figures.
     
  3. Boko Maru

    Boko Maru Sergeant

    Joined:
    Oct 11, 2007
    Messages:
    250
    Likes Received:
    0
    For free there is nothing anywhere that will give you the info "right away".

    If you're willing to pay, you can try Fast Economic News / Secret News Weapon SNW, the "Just the News" product. It's $9.95 per month for a 10 second delay, then you pay more for less and less delay time.
     

Share This Page