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The RBNZ is up this week! What can you expect from the central bank and how can the Kiwi react?

Here’s a list of events that could influence the Kiwi’s price action:

RBNZ policy decision (Nov 13, 1:00 am GMT)

  • Reserve Bank of New Zealand (RBNZ) kept its cash rates steady at 1.00% in September after cutting rates by 50 bps in August
  • RBNZ expected rates to be “low for longer,” hinted at scope for further monetary and fiscal support
  • Analysts are divided, but many expect a 25 bps rate cut this week after last week’s poor labor market data and U.S.-China trade uncertainty
  • A quarterly policy report will also be printed, together with a quarterly presser by Governor Orr
  • Watch out for hints of further easing in 2020, as slowing global growth, weak domestic data, and U.S.-China trade uncertainty affect RBNZ’s mandates.

Business NZ manufacturing PMI (Nov 14, 9:30 pm GMT)

Market sentiment

Technical Snapshot

  • NZD/USD, NZD/JPY, NZD/CHF, NZD/CAD, and NZD/EUR are all below their 200 SMAs but are above their 50SMAs. Watch for potential retracements or longer-term reversals
NZD SMAs MarketMilk
NZD SMAs MarketMilk
  • GBP/NZD, NZD/JPY, NZD/USD, and NZD/CHF saw the highest volatility among the major NZD pairs for the past 30 days.
NZD 30 Day Volatility from MarketMilk
NZD 30 Day Volatility from MarketMilk
  • GBP/NZD still has room for volatility compared to the other three volatile NZD pairs

NZD 7 Day Volatility from MarketMilk
NZD 7 Day Volatility from MarketMilk

Missed last week’s price action? Read NZD’s price recap for November 4 – 8!