NZD AWAITS RBNZ RATE STATEMENT
The Reserve Bank of New Zealand will be releasing their interest rate during the early hours of Wednesday. The bank has kept the rate unchanged since May 2020, but the new forecast indicates that the rate will be increased to 0.5% from 0.25%. NZD crashed last night as the new COVID cases arise in New Zealand, in which a compulsory three days lockdown has been announced.
If the rate is kept unchanged like it has been, the price of NZD will continue to decline further. But if it is increased as forecasted, NZD is expected to be strong. But with the increase COVID cases that just hit the economy, RBNZ might leave the rate unchanged and decide to increase the rate in the future.
Price action is indicating that NZD will decline further as the sell pressure increases.
EURNZD and NZDUSD are both at resistance and support level respectively. These zones might get broken upon the release of the news or a reversal might occur.
NOTE: Trading the news is quite risky because of high volatility, you are hereby advised to trade carefully or not trade it at all.
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