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.

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
Bullish
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
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
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
Gold
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
GBP/USD
Bullish
USD/JPY
Bearish
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
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.06%, while traders in US 500 are at opposite extremes with 71.21%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/m74wuZZKeH
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 0.42% Gold: -0.03% Oil - US Crude: -0.83% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/4cYiwWIL4E
  • What financial job opportunity in which location makes the cut for you? Find out! https://t.co/rrCpMM85Rt https://t.co/4rS0V6FiEm
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.33% 🇦🇺AUD: 0.20% 🇨🇦CAD: -0.00% 🇪🇺EUR: -0.02% 🇯🇵JPY: -0.03% 🇬🇧GBP: -0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/GOEvZ8H1yT
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: France 40: 0.33% Germany 30: 0.31% FTSE 100: 0.29% US 500: -0.23% Wall Street: -0.44% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/0oIElrc66l
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/afobcd9GRa https://t.co/bn3jPwlxks
  • Arizona virus cases rise 5.1% vs prior 4.7% 7-day average - BBG
  • The US Dollar is entering the third quarter with its safe haven status tested by rising COVID cases and trade pressures. What are the key USD catalysts in these opening weeks of July? Download the 3Q guide from @JohnKicklighter to find out here: https://t.co/z3dYpQYiJa https://t.co/Eh2Pd9YZq7
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.26% 🇦🇺AUD: 0.16% 🇪🇺EUR: 0.06% 🇯🇵JPY: 0.00% 🇬🇧GBP: -0.04% 🇨🇦CAD: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/xEQQA9wfDe
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: -0.37% Wall Street: -0.69% Germany 30: -0.84% France 40: -1.05% FTSE 100: -1.45% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/8qMWUcY2fh
New Zealand Dollar at Critical Point Ahead of Q4 GDP Report

New Zealand Dollar at Critical Point Ahead of Q4 GDP Report

2013-03-15 00:39:00
Renee Mu, Currency Analyst
Share:
New_Zealand_Dollar_at_Critical_Point_Ahead_of_Q4_GDP_Report_body_Picture_1.png, New Zealand Dollar at Critical Point Ahead of Q4 GDP Report

New Zealand Dollar at Critical Point Ahead of Q4 GDP Report

Fundamental Forecast for US Dollar: Bearish

The New Zealand Dollar fell sharply on Thursday as the Reserve Bank of New Zealand decided to hold its benchmark rate unchanged at a record low 2.5 percent for a 16th straight meeting. Warnings over a potential rate cut on an overvalued currency intensified the sell-off. The Kiwi rebounded to its pre-report level at Friday’s close, but it still faces downside pressure as New Zealand’s fourth quarter GDP report will be released on Wednesday.

Bring the economic calendar to your charts with the DailyFX News App.

The reserve bank has made it very clear in its latest monetary policy statement that a higher exchange rate “in the absence of a corresponding relative strengthening economy would warrantlower interest rates”. Questions to traders are when the rate cut will happen and how deteriorating fundamentals could trigger the change. According to a survey by Bloomberg News, the current consensus forecast call for an unchanged rate on April 24. Yet outlook for the target rate could be completely revised once fourth-quarter Gross Domestic Product results are delivered. We could see important volatility in New Zealand dollar currency pairs on any surprises.

GDP will be a perfect indicator to measure the fundamental changes in New Zealand. The index is forecast to increase by 2 to 3 percent on a yearly basis according to the Reserve Bank; any outcome outside this range will be a surprise markets. Risks to growth are export sectors, which may be hampered by the expensive currency and the cost and timing of the reconstruction process in Christchurch. But keep in mind that the central bank watches moves in the New Zealand dollar in both directions. A rise to levels not consistent with underlying economic conditions will lead to a rate cut. On the contrary, if the Kiwi declines at a faster pace than the real economy supports, the central bank would respond with monetary policy tightening to ease inflation pressures.

On the external side, the Reserve Bank of Australia will issue March policy meeting minutes on Tuesday. An improving economic outlook in Australia, New Zealand’s most important trade partner, may strengthen the exports and imports between the two countries and therefore provide support to the KiwiNew Zealand’s second-largest partner, China, will announce its new central bank head on Saturday. The likelihood of current governor Zhou Xiaochuan to stay has grown significantly, as he is now exempt from effectively mandatory retirement at the age of 35 as he has now been made a government leader. His extension would provide stability when China is trying to maintain moderate economic growth. Yet it may not be good news for New Zealand as the governor has reiterated central bank focus on fighting inflation. Thus, more tightened monetary policies may be carried out and therefore reduce China’s oversea purchases and hurt New Zealand’s export sectors.-RM

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

DISCLOSURES

News & Analysis at your fingertips.