After a bearish week last week the NZDUSD is trying to decide which direction to go. It is likely that the market is waiting on today’s announcement, due at 5pm New York time, to tell us if there is an interest rate change. The rate statement will also be released, giving us the reasoning behind the interest rate decision.
Economists are expecting the central bank to hold the rate at 2.5%. Comments from March asserting that the New Zealand Dollar is undervalued could also influence any volatility that manifests today. RBA Governor Graeme issued that opinion along with stating the New Zealand Dollar will suffer if it continues to trade at the present rate.
Some market analysts expect a rate hike in the coming fall to winter season of 2013.
Many possibilities but no one knows for certain what will happen. That is one reason why fundamental analysis is very important to trading. A news event could unexpectedly move a currency hundreds of pips while you are at work or sleeping. Being aware of news announcements and government decisions being released is important for the long-term success of a trader, Forex, or in other markets.
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