CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Chart of the day - NZDUSD (18.08.2021)

09:13 18 August 2021

The Reserve Bank of New Zealand left rates unchanged at today's meeting. RBNZ ended its QE programme in July and was expected to begin a rate hike cycle today. However, as New Zealand headed into a fresh nationwide lockdown, central bankers decided to stay on hold and wait to see how the situation develops. Nevertheless, it should be seen more as a brief pause rather than a big shift. Projections released by the RBNZ showed that the Bank still expects at least one 25 basis point rate hike this year followed by 4 rate hikes in 2022 (100 basis points). The New Zealand housing market is running hot and inflation is accelerating therefore RBNZ sooner or later will need to hike rates in order to avoid overheating the economy. Next RBNZ meeting is scheduled for October 3 and should the new Delta variant outbreak be contained quickly, central bankers from New Zealand may push forward with a rate hike then.

RBNZ rate hike looked like a done deal at the start of the week. However, most of the economists revised their expectations following yesterday's lockdown announcement. In turn, today's "hawkish hold" was more or less expected and did not trigger a major move. NZDUSD dropped following the decision announcement but has quickly recouped losses and climbed back above 0.6900 handle. The pair is now trading at the 0.6925 price zone that marks the lower limit of a descending triangle pattern. Breaking below could pave the way for a large downward move with 0.6375 area being a textbook range of the breakout. The pair may enjoy elevated volatility this evening as FOMC minutes are scheduled for release at 7:00 pm BST.

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Source: xStation5

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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