January 24, 2011
Just like its com-doll sibling aross the Tasman Sea, Kiwi trading was as chill as Pip Surfer whenever he hits the beach. NZD/USD traded within a range of 90 pips, ultimately closing at .7586, its opening price for the day.
While no economic data is scheduled for release today and tomorrow, make sure you keep an eye out on Australian data and news. Australian inflation reports (PPI and CPI) will be released, and depending on the results, could spark a spike in volatility in Aussie trading. With the Kiwi being highly correlated with the Aussie, we could see a ripple effect take place on Kiwi pairs, so watch out.
On Wednesday, the RBNZ will be releasing its interest rate decision. Nobody expects RBNZ head Alan Bollard to hike rates, especially given the current conditions (Australian floods). I’ll be listening to this report, and you should too – you never know if a central banker may drop a hint as to what the RBNZ plans to do in the coming months.
"The only cable I watch is the pound baby."