NZDUSD - Bearish Bias Going Into RBNZ Rate Statement
The focus for this week will definitely be on the New Zealand Dollar (NZD), a.k.a the Kiwi.
The New Zealand’s central bank – the Reverse Bank of New Zealand (RBNZ) will be releasing their latest Official Cash Rate and the Rate Statement this Thursday. Since the interest rate is expected to remain unchanged at 1.75%, the key will be the tone of the Rate Statement.
A dovish tone will see more selling pressure on the NZD; while a hawkish tone will see the NZD being support by the bulls.
Based on our analysis, we are holding a bearish bias on the NZD.
Since late July this year, the NZDUSD has fallen from the high at 0.7557 to the low at 0.7131 in a 5-wave structure; and has since bounced higher towards the recent high at 0.7434 in a 3-wave structure.
According to Elliott Wave Principle, a complete price cycle comprises a 5-wave move, followed by a 3-wave correction.
With that, the correction in NZDUSD is deemed to be completed, and we are now expecting more downside potential for this currency pair.
The New Zealand’s central bank – the Reverse Bank of New Zealand (RBNZ) will be releasing their latest Official Cash Rate and the Rate Statement this Thursday. Since the interest rate is expected to remain unchanged at 1.75%, the key will be the tone of the Rate Statement.
A dovish tone will see more selling pressure on the NZD; while a hawkish tone will see the NZD being support by the bulls.
Based on our analysis, we are holding a bearish bias on the NZD.
Since late July this year, the NZDUSD has fallen from the high at 0.7557 to the low at 0.7131 in a 5-wave structure; and has since bounced higher towards the recent high at 0.7434 in a 3-wave structure.
According to Elliott Wave Principle, a complete price cycle comprises a 5-wave move, followed by a 3-wave correction.
With that, the correction in NZDUSD is deemed to be completed, and we are now expecting more downside potential for this currency pair.