The Reserve Bank of New Zealand (RBNZ) is anticipated to lower the Official Cash Rate (OCR) from 2.5% to 2.25% following its monetary policy meeting in November, which takes place on Wednesday.
This decision will be part of a Monetary Policy Statement (MPS) released at 01:00 GMT, followed by a press conference led by RBNZ Governor Christian Hawkesby at 02:00 GMT.
The New Zealand dollar (NZD) is likely to respond sharply to the central bank’s actions.
What are your expectations for the RBNZ’s interest rate decision?
What effects might the RBNZ’s interest rate decisions have on the New Zealand dollar?
“From a technical viewpoint, the Kiwi pair still has bearish possibilities, as the 14-day Relative Strength Index (RSI) is well below the midline.”
“If sellers press for a dovish rate cut from the RBNZ, the NZD/USD pair might dip further towards support at 0.5550. If it drops lower, it could test the round figure of 0.5500 and the April lows at 0.5486. For a notable recovery, we would need to see the 21-day simple moving average (SMA) firmly reach 0.5663. Beyond that, the upside target aligns with the 50-day SMA at 0.5735 and the threshold at 0.5800,” Dhwani added.
