The RBNZ meets and announces their interest decision in the new trading day (at 10 PM ET).
After 12 consecutive hikes, the central bank kept rates unchanged at their last meeting at 5.5%. They are expected to keep the rate unchanged once again.
Going forward the market has just a 10% chance of a October hike, and a 30% chance for a November hike as inflation remains high relative to the target of 1 – 3% (currently at 6%).
The current price is trading near lows for the year after dipping below the old low from the end of May at 0.5985. That level will be a barometer for “bullish above” and “bearish below” after the decision.
On the topside, a move higher would have traders targeting the 50% midpoint of the range since the 2022 low. That level comes in at 0.60242. It is also near the low of a swing area on the 4 – hour chart (swing area extends up to 0.6032). Get about that area and the door opens for further upside momentum.
On the downside, the 61.8% retracement of the range since the 2022 low cuts across as 0.5903 (close to 0.5900). Move below that level and the door opens for further selling momentum.
This article was written by Greg Michalowski at www.forexlive.com. Source