Reserve Bank of New Zealand’s surprise rate cut last week got Kiwi crosses rolling down. Today we are looking at Japan and New Zealand economy to construct NZDJPY forex trading strategies March 2016. Is your current financial situation suitable for forex trading? If yes, let’s take a look at potential trading opportunities!
NZDJPY forex trading strategies March 2016 – Mr. Kiwi and Ms. Yen Dancing on the Forex Dance Floor
1- New Zealand Economy
Let first look at the economic data from last month. Here are positive and negative notes that have had an impact on NZDJPY forex trading strategies March 2016:
Positive stuff
Negative stuff
Smash! With negative stuff outweighing the upbeat data, the Reserve Bank of New Zealand (RBNZ) seems to have been justified in cutting rates. Especially since most of the negative data could affect inflation down the road.
After RBNZ Graeme Wheeler’s jawboned the Kiwi, he said “a decline would be appropriate” which threats further rate cuts.
This week on New Zealand economy we are awaiting the Global Dairy Price Index (GDT) of Tuesday followed by its quarterly GDP on Wednesday at 9:45 PM GMT. These could further impact the Kiwi in a negative way if the numbers are printed lower than expected.
2- Japan Economy
Last month Bank of Japan (BOJ) caused a few spikes in Yen forex dance floor. It surprisingly cut its benchmark interest rate. And finally joined the ECB and SNB in implementing a negative interest rate policy. BOJ Governor Kuroda cited worries over inflation, China, and the global economy as reasons for their aggressive moves.
