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NZD/USD Signal - RBNZ decision - 08 Feb 2017

Signal details
Entry Price: 
0.7300
Close Price: 
0.7259
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
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The NZDUSD was trading weaker during the early Asian trading session this morning in anticipation of potential policy changes from the RBNZ's monetary policy meeting later tonight. The RBNZ is expected to keep interest rates unchanged at 1.75% during today's meeting with some economists expecting to see the central bank drop hints on potential rate hikes by next year.

However, it is still too early to tell and any such hawkish comments could come only after the end of the first quarter. The strength of the NZD is likely to be an issue for the RBNZ especially after the Fed left rates unchanged few weeks ago. The RBNZ could therefore be coming out strongly against the NZD's exchange rate.

In light of this information, NZDUSD daily PUT's can be purchased at 0.7300 - 0.7285 levels for 21:00 GMT expiry as the hourly chart shows a head and shoulders pattern that could decline towards 0.7250 by today's close. The RBNZ's announcement is due at 20:00 GMT.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.