• RBNZ continues with ultra-loose monetary stance
  • GBP/NZD took a strong hit
Chart 1: GBP/NZD D1 chart

During the monetary policy meeting on Wednesday, the Reserve Bank of New Zealand (RBNZ) kept monetary policy unchanged as widely expected. New Zealand’s interest rate will remain at 0.25% while the Large-Scale Asset Purchase (LSAP) programme and the Funding for Lending Programme (FLP) will continue to operate till June 2022 at their current settings. The central bank also reiterated that it is ready to further cut interest rate if necessary.

With the RBNZ monetary policy remaining in status quo, the New Zealand dollar responded by strengthening against the other major currencies. Among all, the British pound suffered the hardest hit against the New Zealand dollar. At the moment, our technical indicators are indicating signs of downward momentum in GBP/NZD. Look for selling opportunities of GBP/NZD if it breaks below the 1.92 handle.

Trade Setup for GBP/NZD (D1)
Sell Stop Order at 1.91500

Upcoming major news that may impact price movement of GBP/NZD
21 April – New Zealand CPI data release at 0645 (SGT)
23 April – Britain flash PMI data release at 1630 (SGT)

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By Gim Hong Lee

Gim Hong has been a full-time currency trader for more than 2.5 years, focusing on day and swing trading of major currencies and their crosses. He is a frequent contributor of currency and economic analysis in Forex Trading Asia. Graduated from Columbia University in the City of New York with a bachelor’s degree in applied mathematics and statistics, the nerdy side of Gim Hong enjoys learning about data analysis, machine learning and their applications in currency trading.

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