[VIDEO] RBNZ just as dovish as the rest!
Joe Perry February 24, 2021 7:40 PM
Kiwi is highly correlated to the price of copper
The Reserve Bank of New Zealand was the sole major Central Bank to have their monetary policy meeting this week. After leaving rates unchanged at a record low of 0.25% and large-scale asset purchases of up to 100 billion New Zealand Dollars per month, members agreed that the central bank would remain on hold until CPI and Employment targets were met.
NZD/USD consolidated in a pennant formation and broke higher on February 19th. The target for the breakout of the pennant formation is near 0.7885! However, notice price is diverging with the RSI, an indication price may be ready for a pullback.
Notice that the price of the kiwi is highly correlated to the price of copper. The current correlation coefficient is +0.93.
Copper metal may be ready for a pullback. If it does, watch for kiwi to pull back as well.
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