NZD/USD jumped some 50 pips in the morning after RBNZ's measure of core inflation came in at a 7-year high. That came after official inflation data for the second quarter showed a slight miss on expectations, but still solid. NZD/USD rallied off of 0.67 area twice but further upside won't come easy without RBNZ moving into hawkish direction.
Community Blog
NZD/USD bounces from two-year lows
NZD/USD fell to the lowest level in two years on Monday but bounced just as quickly. Market is already very short and it will likely take further escalation in trade wars and/or more dovish hints by the RBNZ to encourage new bears to enter. 0.665 is the next target on the downside while 0.68 - 0.685 area should provide resistance.
AUD/USD pulling back after 150 pip rally
RBA meeting Minutes, released earlier today, did not offer anything new. Monetary policy (and cash rate) are on hold, but, unlike neutral RBNZ recently, RBA agrees that the next move in the rate will likely be up. AUD/USD is pulling back toward 0.75 after 150 pip rally from 12-month lows. 0.745 - 0.75 should now hold, if the rally is to continue, with 0.765 the initial target.
Kiwi welcomes new RBNZ governor
N.Z. PM Jacinda Ardern announced that Adrian Orr will become the new RBNZ governor. Kiwi liked the news, jumped about 50 pips and added another 20 later. The pair appears to have been forming a bottom with CFTC positioning data showing a large net short.
Kiwi bounces from one-year lows
NZD/USD started the week on a firm note. The pair fell to one-year low near 0.6775 ahead and after the game-changing outcome of the New Zealand election. Adjustment lower may be over for now with RBNZ turning slightly more hawkish. 0.70 is the next target.
Kiwi jumps on solid inflation report but pares all gains
New Zealand dollar spiked on better than expected inflation report (1.9% year-over-year) overnight but pared all gains in subsequent hours as RBNZ's own inflation measure showed just 1.4%. We are still waiting for Winston Peters to decide which coalition his party will join.
Kiwi traders have been understandably cautious after 150-pip rally from the lows near 0.7050. 0.72 is the initial hurdle on the way to 0.73 - 0.7350 resistance area. 200 DMA near 0.7150 is the immediate support ahead of a st…
Kiwi traders have been understandably cautious after 150-pip rally from the lows near 0.7050. 0.72 is the initial hurdle on the way to 0.73 - 0.7350 resistance area. 200 DMA near 0.7150 is the immediate support ahead of a st…
Kiwi finds equilibrium near 0.73
Kiwi has been in sideways mode during the last couple of weeks. RBNZ last said that monetary policy will remain accommodative for a considerable period. However, signs of sustained inflation could change the bank's outlook and prompt sooner tightening.
Relative absence of data from New Zealand in the weeks ahead means that the current mode with continued slow drift higher may be the most likely scenario. 0.72 - 0.7250 is the range support and 0.7350 - 0.74 is the resistance.
Relative absence of data from New Zealand in the weeks ahead means that the current mode with continued slow drift higher may be the most likely scenario. 0.72 - 0.7250 is the range support and 0.7350 - 0.74 is the resistance.
Kiwi jumps on upbeat RBNZ
RBNZ held the official cash rate at 1.75%. Rate statement was little changed. Both wages and inflation are expected to increase gradually. Monetary policy is to remain accommodative for a considerable period. Comment on New Zealand dollar was softer than many expected.
Kiwi jumped about half a cent after the release and stabilized near 0.725 in following hours. Month's high near 0.7325 is the next target and then year's high at 0.7375. Strong support area at 0.7175 - 0.72 should continue to hold…
Kiwi jumped about half a cent after the release and stabilized near 0.725 in following hours. Month's high near 0.7325 is the next target and then year's high at 0.7375. Strong support area at 0.7175 - 0.72 should continue to hold…
Kiwi falls as RBNZ stays neutral
RBNZ left official cash rate at 1.75%. While that was not surprising, market did expect them to send a hawkish signal, following improvement in inflation and labour market data. The bank remained neutral and the Kiwi fell more than a cent immediately after the release.
50.0% retracement of the 2015 - 2016 rally, at 0.6785, is the next target and below there the bottom of the 2016 - 2017 channel, near 0.675. On the upside, 0.69 is the first obstacle with stronger resistance found in 0.695 - 0.70 …
50.0% retracement of the 2015 - 2016 rally, at 0.6785, is the next target and below there the bottom of the 2016 - 2017 channel, near 0.675. On the upside, 0.69 is the first obstacle with stronger resistance found in 0.695 - 0.70 …
Kiwi falls as FOMC remains constructive
As widely anticipated, FOMC made no changes to interest rates. The accompanying statement didn't change much. Perhaps the key takeaway is the ease with which the committee dismissed slowing in growth during the first quarter as likely transitory. That confirms June hike is firmly on the table.
With RBNZ expected to remain sidelined for a considerable period of time, New Zealand dollar is slowly losing its interest rate advantage over the U.S. dollar. Kiwi topped out near 0.7050 in April and the …
With RBNZ expected to remain sidelined for a considerable period of time, New Zealand dollar is slowly losing its interest rate advantage over the U.S. dollar. Kiwi topped out near 0.7050 in April and the …