Forex Weekly Analysis: How to trade this week’s RBNZ meeting

Central banks around the world are in a race to devalue their currencies and adopt easier monetary policy.

The Reserve Bank of New Zealand is scheduled to meet this week. Probabilities for the RBNZ to cut rates this week is sitting at 92% at the time or writing.

There are three possible scenarios how this event can play out – each with their own trading approach.

1) A rate cut with an overly dovish RBNZ – sell the NZD

2) A rate cut with a more neutral and data dependent RBNZ – buy the NZD

3) No rate cut with a hawkish RBNZ – buy the NZD

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Highlights:

01:00 – Why our Fundamental bias is bearish on the NZD

02:50 – Three different scenarios for this week’s RBNZ meeting

05:15 – Why the EURNZD or NZDJPY could provide possible trades this week

06:48 – Technical Analysis for EURNZD and NZDJPY

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