0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Emerging Markets: Volatility is rife within the EM complex following the heavy selling in the Turkish Lira, having blown past the 7.0000 handle. Get your $XAG market update from @JMcQueenFX here: https://t.co/SIfXngFsR8 https://t.co/uDh1sdNfkn
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.13%, while traders in US 500 are at opposite extremes with 76.27%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/E6VnriWgve
  • RT @FxWestwater: $USDTRY, $EURTRY Jump to Record Highs on #Lira Weakness - via @DailyFX https://www.dailyfx.com/forex/market_alert/2020/08/06/USDTRY-EURTRY-Jump-to-Record-High-on-Lira-Weakness.html https://t.co/LsZS5Tifho
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 4.47% Gold: 0.94% Oil - US Crude: 0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/uUMsYzfIqQ
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.61% 🇬🇧GBP: 0.43% 🇳🇿NZD: 0.37% 🇯🇵JPY: 0.18% 🇨🇭CHF: -0.06% 🇨🇦CAD: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/qChN4x7BRN
  • 🇷🇺 Inflation Rate YoY (JUL) Actual: 3.4% Expected: 3.4% Previous: 3.2% https://www.dailyfx.com/economic-calendar#2020-08-06
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.04% France 40: -0.02% Germany 30: -0.07% FTSE 100: -0.09% US 500: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/1YBsxDGpxy
  • RT @realDonaldTrump: Upon departing the Oval Office for Ohio, I’ve notified my staff to continue working on an Executive Order with respect…
  • Heads Up:🇷🇺 Inflation Rate YoY (JUL) due at 16:00 GMT (15min) Expected: 3.4% Previous: 3.2% https://www.dailyfx.com/economic-calendar#2020-08-06
  • Japanese #Yen Outlook: $USDJPY Rebounds Off Support- Recovery Levels - https://t.co/3Q9KuieaSE https://t.co/iMyJx8fBwL
NZD/USD Rate Outlook Remains Constructive Ahead of RBNZ Meeting

NZD/USD Rate Outlook Remains Constructive Ahead of RBNZ Meeting

2019-03-26 23:00:00
David Song, Strategist
Share:

Trading the News: Reserve Bank of New Zealand (RBNZ) Interest Rate Decision

The Reserve Bank of New Zealand’s (RBNZ) meeting may shake up the near-term outlook for NZD/USD as the central bank shows little to no interest in altering the outlook for monetary policy.

Image of DailyFX economic calendar

Unlike its major counterparts, the RBNZ may stick to the same script and merely reiterate its pledge that the official cash rate (OCR) will be ‘at an expansionary level for a considerable period to contribute to maximising sustainable employment, and maintaining low and stable inflation.’ With that said, little to no changes in the forward-guidance for monetary policy may spark a bullish reaction in the New Zealand dollar as it curbs speculation for an RBNZ rate-cut.

However, the RBNZ may respond to the slowdown in global growth as the Governor Adrian Orr and Co argue that ‘the direction of our next OCR move could be up or down,’ and a batch of dovish comments may drag on the New Zealand dollar especially if the central bank shows a greater willingness to further support the economy. Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups.

Impact that the RBNZ rate decision had on NZD/USD during the previous meeting

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

FEB

2019

02/13/2019 01:00:00 GMT

1.75%

1.75%

+94

+69

February 2019Reserve Bank of New Zealand (RBNZ) Interest Rate Decision

NZD/USD 5-Minute Chart

Image of nzdusd 5-minute chart

As expected, the Reserve Bank of New Zealand (RBNZ) kept the official cash rate (OCR) at the record-low of 1.75% in February, with the central bank largely endorsing a wait-and-see approach for monetary policy as officials ‘expect to keep the OCR at this level through 2019 and 2020.’ The RBNZ went onto say that ‘there are upside and downside risks’ surrounding the economic outlook amid the slowdown in global growth, but it seems as though Governor Adrian Orr and Co. are in no rush to alter the monetary policy outlook as the central bank expects ‘low interest rates and government spending to support a pick-up in New Zealand’s GDP growth over 2019.

The New Zealand dollar gained ground as the RBNZ stuck to the same script, but the move above the 0.6800 handle was short-lived, with the exchange rate closing the day at 0.6796. Learn more with the DailyFX Advanced Guide for Trading the News.

NZD/USD Rate Daily Chart

Image of nzdusd daily chart
  • Keep in mind, the broader outlook for NZD/USD remains fairly constructive as both price and the Relative Strength Index (RSI) continue to track the upward trends from earlier this year, but the exchange rate may face range-bound conditions over the near-term as it appears to be stuck in a long-term wedge/triangle formation.
  • The Fibonacci overlap around 0.6930 (23.6% expansion) to 0.6960 (38.2% retracement) remains on the radar as it lines up with the 2019-high (0.6942), with a break/close above the stated region raising the risk for a run at the December-high (0.6969).
  • Next region of interest comes in around 0.6990 (50% expansion) following by the 0.7040 (50% retracement) zone, but failure to hold above the 0.6820 (23.6% retracement) to 0.6870 (78.6% expansion) area may trigger a move back towards 0.6780 (100% expansion) to 0.6790 (50% expansion).

Additional Trading Resources

New to the currency market? Want a better understanding of the different approaches for trading? Start by downloading and reviewing the DailyFX Beginners Guide!

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader series on how to effectively use leverage along with other best practices that any trader can follow.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.