On 29 October, the dollar NZD> New Zealand dollar traded higher against the dollar by 0.09% before the announcement of decisions on monetary policy the US Federal Reserve (Fed) and the Reserve Bank of New Zealand (RBNZ).
Expectations of market participants about the decisions of the Central Banks in the US and New Zealand are learned from the experts of the Forex Broker Company «NordFX».
What do the market participants expect from the decisions of the Fed and RBNZ?
On October 29, completed the Fed meeting and the RBNZ. Market participants expect that both decisions will signal a slight tendency to soft policy. Most likely, the Fed will announce the completion of the third phase of quantitative easing and possibly apply a few cautious rhetoric. Among other things, the Fed may mention the slowing global economy and express concern at the situation in Europe. The range of interest rates are likely to remain unchanged 0-0.25%.
Reserve Bank of New Zealand, apparently, to leave interest rates at 3.5%, but may declare that inflation lags behind forecasts and try again "persuade" the New Zealand Dollar was lower.
On Wednesday, an independent group NZIER, studying questions of monetary policy, the RBNZ recommended not to change the interest rate. "The annual inflation rate is 1%, and further rate hike would threaten to reduce the rate of inflation below the central bank's target range," - said the Chief Economist at NZIER Cirdan Fox.
He noted that the RBNZ may be forced to lower the rate, if the situation in the world economy or the economy of New Zealand significantly deteriorate, although now he does not see the need to reduce it.
Prospects for the New Zealand and US dollars on Forex
Experts of the Masterforex-V World Trading Academy http://www.masterforex-v.com/ reviewed hour time frame currency pair kiwi-dollar. Against the background of the main long-term downtrend New Zealander, now is its corrective gains against the dollar, which began near the level of a local minimum of 0.7798 yesterday, Oct. 28 at the American session and reached a session of a local maximum near 0.7958.
From a technical point of view in the medium term is likely to continue to strengthen New Zealander in the area of 0.7958 and 0.7990, and possibly higher, given the high volatility in the foreign exchange market during the announcement of central bank interest rates. This option is marked on the graph by the blue arrow.
An alternative would be to reduce the New Zealanders towards long-term trend in the area of 0.7909 and 0.7884.
Chair of binary options traders of Masterforex-V World Academy recommend to make deals "buy" on the binary options analyzed only a couple of price adjustment downward in the presence of rising medium-term trend for the pair. The life of a binary option for medium-term forecast can be set 1.5-2 hours. Expiration life binary option in the profit zone will bring traders trading binary options, the maximum profit.
