The RBNZ considered cutting interest rates at their rate meeting last week, but contrary to market expectations, decided against it. This resulted in immediate NZD strength and the RBNZ is now in a data dependent/wait and see mode with the willingness to ease further if necessary:
The Committee debated the costs and benefits of keeping the OCR at 1.0 percent versus reducing it to 0.75 percent. The Committee agreed that both actions were broadly consistent with the current OCR projection. The Committee agreed that the reduction in the OCR over the past year was transmitting through the economy and that it would take time to have its full effect.
The next key data point is the Q3 GDP on December 18 at 2045GMT, so until then expect the NZD to be mainly moved around with risk sentiment on the US-China trade deal. Positive noises will support the NZD and negative noises weigh on the NZD. The interest rate decision itself was a perfect chance to buy the NZD out of the decision for a high conviction trading opportunity and these are key events to take advantage of. Watch them and learn from them if you missed it.