NZD/JPY Forex Trading Strategies March 2016


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

  • New Zealand’s Q3 2015 GDP grew faster than Q2
  • New Zealand economy seems to be doing well enough
  • Businesses remain rather optimistic
  • Negative stuff

  • New Zealand’s annual GDP reading has been slowing down
  • New Zealand has a rather severe inflation problem
  • Kiwi’s strength end of 2015 made imports relatively cheap, inflicting broad deflationary pressure on New Zealand’s economy
  • Labor force participation rate is declining
  • Wage growth is very weak
  • 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.

    Reviews

    • Total Score 0%
    User rating: 0.00% ( 0
    votes )



    Leave a Reply

    Your email address will not be published. Required fields are marked *