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Central Bank Previews: RBNZ and SNB

CMC Markets

There are two central bank decisions coming up over the next 24 hours that could have an impact on selected FX pairs. While neither central bank is expected to make any changes to interest rates, any comments related to FX intervention could have an impact. The RBNZ is up first at 9:00 am NZ time, 8:00 pm GMT. The RBNZ had intervened to knock NZD down back in May and the issue had gone quiet until recently. With the RBA making noise about a potential intervention on AUD and the Kiwi Dollar rising lately, any comments on the value of the dollar could attract attention. The RBNZ previously indicated that it would hold its benchmark rate for the rest of 2013, but could potentially increase the rate in early 2014. With this being the last meeting of the year, traders may also be looking closely for any changes to its interest rate guidance. The SNB's decision is due at 8:30 am GMT tomorrow. While EURCHF remains well above the 1.2000 floor of the last few years, it has dropped to the low end of the 1.2200 to 1.2400 trading range that has prevailed in recent months. In addition, both currencies have rallied against USD lately so trader may be looking for indications of how comfortable the central bank is with current CHF levels.

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