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The RBNZ is up this week! What can you expect from the central bank? More importantly, how might the Kiwi react to the event?

RBNZ statement (Mar 27, 2:00 am GMT)

As expected, the Reserve Bank of New Zealand (RBNZ) kept its monetary policies steady at 1.75% in its latest policy decision.

What traders didn’t expect, however, was that Governor Orr and his team would still signal that the next move for their interest rates is likely to be higher than lower even as they recognize that downside risks among their major trading partners and global economies have increased.

The not-so-dovish tone, together with a better-than-expected top-tier data release from China, woke up the bulls and pushed the Kiwi higher.

This week, analysts expect central bank members to maintain their policies for another month in March.

This time around, they’re also expecting the RBNZ to acknowledge the downside risks of global growth and trade tensions among its major trading partners, but that they would keep their optimism by pointing out the latest upside surprise in the GDP report.

Aside from the statement on late Tuesday, also note that Governor Orr is scheduled to give a speech over their monetary policy framework on March 28 at 9:00 pm GMT in Wellington. Stay glued to the tube for any clues on what the central bank is up to next!

ANZ business confidence (Mar 28, 1:00 am GMT)

RBNZ members have hinted that they take policy cues from business sentiment, which is why traders pay a lot of attention to private reports such as ANZ’s business confidence release.

The report came in at -30.9 in February, which weighed on the Kiwi during the release and made it easier for the bears to attack in the later trading sessions.

This week, analysts expect to see the report inch higher to -24.3. A more pessimistic release could drag the Kiwi lower, while upside surprises could push the comdoll higher.

Thursday’s Asian session is pretty light data-wise, so it’s possible that the report could dictate the Kiwi’s intraday price action until it sees another catalyst!

Missed last week’s price action? Read NZD’s price recap for March 18 – 22!