Global macro overview for 22/07/2015:

The Reserve Bank of New Zealand (RBNZ) will announce its benchmark interest rate decision later today. The market does not expect any rate cut from the current level of 3.25% maybe because two weeks ago the RBA decided to leave the interest rates unchanged at the level of 2%. The other factor is the previous rate cut to 3.25% from 3.5% at the RBNZ meeting on July 11, 2015. Nevertheless, deteriorating economic conditions, including sluggish global growth and mixed data on the New Zealand strategic partners US and China, the decrease in export commodity prices, and Iranian nuclear deal, are not helping the New Zealand economy to get back on steady and sustainable path of progress.

Any unexpected rate cut tonight might produce a short squeeze on main NZD pairs, including USD/NZD, GBP/NZD, and AUD/NZD.

The scheduled news release is as follows (GMT):

21:00 New Zealand Official Cash Rate 3.25%

21:00 New Zealand RBNZ Rate Statement