How To Trade the RBNZ Interest Rate Decision: Preview
The RBNZ will be making their decision on interest rates at 2000 GMT on 08 November 2017, which is actually Thursday morning in NZ. There appears to be no real way that rates will be getting raised, but we still need to come up with a plan.
There seems to be a few things that might just spike the Kiwi dollar a little higher, regardless of the change in rates. Of course, there is a new Government that is said to be putting upward pressure on inflation. There are also some fundamental factors at play that are putting upward pressure on inflation. The falling NZD also adds to that pressure.
With that in mind, I am still in favour of trading with the trend, which is clearly still bearish. If there is some talk around that suggests inflation might be on the rise, we might just get a spike in the Kiwi.
Trading Plan
That means that we should be able to identify a selling opportunity. A jump above 0.6961 would be the place I would start looking to short. However, for those more conservative traders, you can wait for price action confirmation, by way of a bearish candle. Assuming we see a spike at all.
I will be looking at what happened in the AUD on Tuesday as to a guide to what might happen in the Kiwi.
NZD/USD – 240 min Chart.
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