4:00pm (NY Time) RBNZ Rate Decision Forecast 3.00% Previous 3.00%
ACTION: NZD/USD BUY 3.25%
The Trade Plan
With current forecast from all 15 economists surveyed by Bloomberg agreeing that RBNZ is likely to keep rates unchanged during this meeting, possibilities of getting in on a trade after the release is not very likely; however, in the event that Gov. Bollard surprises the market by:
1. Hike rates to 3.25%: We should see a strong demand in the NZD immediately, and a spike trade to BUY NZD/USD is recommended using spike trading method.
2. RBNZ Bollard talks about imminent future rate hikes in his accompanied speech; this should add strong demand for NZD. A spike trade to BUY NZDUSD should be justified.