New Zealand USD/USD NZNZ Deck Meeting: NZD/USD, NZD/JPY, AUD/NZD, EUR/NZD, GBP/NZD – Levels to watch
- The implied volatility of the New Zealand dollar pushed up extreme levels before the Reserve Bank of New Zealand decided to expire
- The price trend of NZD/USD is expected to be the most unstable, with an overnight IV reading of 22.3%
- If the central bank lowers the currency exchange rate, the New Zealand central bank may have a negative impact on the New Zealand dollar
The New Zealand dollar may expire due to intensified market activity on Wednesday. This is because the implied volatility reading of the New Zealand dollar is very high, because foreign exchange traders are preparing for a planned monetary policy update from the Reserve Bank of New Zealand (RBNZ).
Customers are Net length.
Customers are Net short position.
The Reserve Bank of New Zealand interest rate decision due on August 12, 2020 GMT
Chart source: DailyFX Economic Calendar
The Bank of New Zealand will make an interest rate decision at 02:00 GMT on Wednesday, August 12, and will then hold a press conference led by the Governor of the Bank of New Zealand, Adrian Orr. The market unanimously expects the Reserve Bank of New Zealand to maintain its benchmark policy rate unchanged at 0.25%. Having said that, the Reserve Bank of New Zealand may try to lower the New Zealand dollar exchange rate as in previous monetary policy press releases, stating in detail that “the appreciation of the New Zealand dollar exchange rate will put further pressure on export revenue.” . ”
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As one might expect Central Bank Meeting, Then potentially Currency fluctuations. The upcoming decision by the Bank of New Zealand provides a good example, as the volatility reading implied by the New Zealand dollar overnight soared to the highest point before the interest rate decision on Wednesday.
In tomorrow’s trading session, NZD/USD is expected to be the most volatile New Zealand dollar currency pair. Judging by the overnight implied volatility of the New Zealand dollar against the US dollar of 22.3%, the volatility is among the top 97day The percentile of the measurement taken in the past 5 years and is higher than its 20-day average implied volatility reading of 11.6%.
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Correspondingly, in the next 24 hours, it is expected that the NZD/USD spot price trend will fluctuate in the 154-point trading range between 0.6504-0.6658. Statistically speaking, the implied trading range of the option is Technical support and resistance It is estimated that 68% of the time contains spot price movements.
continue reading: Unable to test the January highs, the NZD/USD outlook has an impact on the Reserve Bank of New Zealand
-write Rich Dvorak, Analyst DailyFX.com
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