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So RBNZ cut rates to start the week. What’s next for the Kiwi in the next couple of days? Here’s a list of potential catalysts to watch.

Post-rate cut volatility

  • Reserve Bank of New Zealand (RBNZ) just cut its rates by 75 basis points to 0.25% in an emergency announcement
  • The move is set to combat the “significant” hit of COVID-19 on the economy
  • RBNZ pledged to keep it at this level “for at least the next 12 months
  • Governor Orr hinted that negative rates is not an option at this point, but large-scale asset purchases is

Quarterly GDP (Mar 18, 9:45 pm GMT)

Market risk sentiment

  • COVID-19 updates and its impact on global economic activity will continue to dominate NZD’s price action
  • Scheduled central bank decisions like BOJ’s, the Fed’s, and SNB’s policy decisions as well as any unscheduled policy announcements could also provide volatility for high-yielding bets like NZD
  • Top-tier releases like Uncle Sam’s retail sales, Australia’s labor market data, and Canada’s CPI and retail sales may also provide short-term volatility for NZD’s pairs

Technical snapshot

  • RSI considers NZD as “overbought” against AUD and “oversold” against EUR, CHF, and USD on the daily time frame

  • NZD has been most volatile against JPY, USD, CAD, and CHF in the last 7 days

Missed last week’s price action? Read NZD’s price recap for March 9 – 13!