The RBNZ is now expected to raise the cash rate in November 2021, according to ASB Bank, and the RBNZ can’t afford to wait, according to today’s business survey.
As a result, the bird has rallied to 0.7065, a gain of over 40 pips:
Furthermore, this has boosted the crosses, sending NZD/JPY well on its way to the forecasted 1:3 risk-to-reward opportunity goal, as per the earlier analysis: Bulls stepping in at a major support confluence in the NZD/JPY price chart.
“There is a good chance that the price will rise from here.”
A long trade with a stop loss safeguarding the position from falling below the succeeding support structure can be taken for a 1:3 risk to reward opportunity…”
The price has gone higher and is now challenging the resistance structure, as shown.
If the price fails to break through here on the first try, a strong drop back to retest the new support structure is predicted, with the price continuing to rise.
In the June quarter, Business Sentiment improved (sa) and is already well above pre-COVID levels (and the historical average).
“More critically for economic activity over the next few quarters, firms’ reported and forecast trading activity grew sharply, investment intentions continued to rise, and employment intentions were up as well,” according to ANZ Bank analysts.
The substantial increase in capacity pressure gauges is of special interest to the RBNZ.
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Pricing intentions were higher in Q2 than in Q1, as predicted by our ANZ Business Outlook. The CUBO index increased, indicating that the labor market is tightening, with labor shortages on the rise and a growing number of businesses citing labor shortages as their primary constraint. ”\s” Overall, these findings support our belief that rate hikes are on the way – we’ve penciled in February 2022, but the risks lean to sooner rather than later. The economy is thriving, and while the tourism industry is still softening as a result of the border restriction, the sheer strength of demand elsewhere is swamping this effect.”/n
