The most important event last hours was yesterday’s decision of the Reserve Bank of New Zealand on the level of main interest rate of and publishing statement on monetary policy. At the end of US session also we heard what had to say RBNZ Governor Graeme Wheeler. What else you should know before you start trading today?


The most important information for investors is that interest rates in New Zealand have not changed. The official cash rate (OCR) remains at 1.75%, although in line with analysts’ forecasts Bloomberg – this year, we still expect a modest increase to 1.8%.

Reserve Bank of New Zealand has clearly expressed dissatisfaction on expensive NZD, although the governor Wheeler responded in a fairly positive tone to the whole of the New Zealand economy. A detailed description of yesterday’s events and their impact on the NZD/USD will be presented in a separate article.

NZD / USD broke for no apparent reaction zone support in the area of 0.7220. Nearby response levels can predict the Fibonacci grid.
NZD/USD broke for no apparent reaction zone support in the area of 0.7220. Nearby response levels can predict the Fibonacci grid.

During the Asian session we also had to deal with statements of several representatives of the central banks. One of them was Hiroshi Nakaso, deputy governor of the Bank of Japan. He stated that the best thing to do now is to continue the current monetary policy even the fact that Japanese data are still far from the target levels for the BoJ. Nakaso also believes that global increases in stock prices and long-term forecasts of interest rates in many countries are a reflection of the strong fundamentals of the global economy – not the result of faith in Trumponomics.

As if to confirm Nakaso words during the night appeared a heading in China Securities Journal, which states: “China can continue its policy tightening in interest in 2017”. According to experts, despite the external pressure the Chinese yuan remains relatively stable and the situation on the domestic real estate market favors the development of inflation. PBOC although still didn’t officially enter the path of increases, but Bloomberg analysts believe it’s a matter of time.

In last hours also began an official trip Japanese Prime Minister Shinzo Abe to America. Abe during his visit to the US is expected to meet with President Donald Trump and according to Reuters, discuss the new shape of the trade agreement between the United States and Japan. Abe will remain in the US until 13 February.

On what we shall pay attention to?

Economic calendar today does not provide too many emotions. About 8:00 am we learned the latest data from Germany on the trade balance. Our western neighbor was able to work out in the December trade surplus of EUR 18.4 billion – less than assumed a previous forecast (21.4 billion).

In the morning we will hear yet what to say to a governor of the RBA Philip Lowe and … practically everything that’s all what awaits us in the morning.

The US session starts from the publication of data on the US labor market. About 14:30 parallel to data from America, will be published index of real estate prices in the primary market in Canada. For ten minutes after 15:00, his speech will start James Bullard, who sat in the FOMC.

Day on markets symbolically will be completed by occurrence of the Bank of England governor, Mark Carney. The beginning of the speech is scheduled for 19:30 GMT+1

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