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.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bullish
USD/JPY
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
More View more
Real Time News
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.46% 🇨🇦CAD: 0.33% 🇦🇺AUD: 0.31% 🇬🇧GBP: -0.07% 🇯🇵JPY: -0.15% 🇨🇭CHF: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/olQr1de3Ie
  • Italy will also receive EUR 91bln in loans under recovery plan
  • Reminder, Italian Economy Minister said at the beginning of the month he was confident the new European Recovery Fund will make available at least EUR 100bln..... BTPs off best levels https://t.co/f9Y6NRdmhn
  • Italy to be allocated EUR 81.8bln in grants Spain to be allocated EUR 77.3bln in grants France to be allocated EUR 39bln in grants under EU proposal
  • EU to Unveil Covid-19 Recovery Fund Plan, Swiss Franc Sinking - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/05/27/EU-to-Unveil-Covid-19-Recovery-Fund-Plan-Swiss-Franc-Sinking.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #coronavirus #EU #CHF
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Wall Street: 1.69% France 40: 1.65% Germany 30: 1.61% FTSE 100: 1.51% US 500: 1.50% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/2TnK1MAjal
  • EUR/USD Price Rejected at Resistance, Now Eyes the Support - EUR vs USD Outlook more details in the link: https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2020/05/27/EURUSD-Price-Rejected-at-Resistance-Now-Eyes-the-Support-EUR-vs-USD-Outlook-MK.html?CHID=9&QPID=917714 https://t.co/1WxJZCpEbg
  • FTSE 100 +1.70% @ 6,162 - pushing back towards 50% Fib retracement and early March gap...#ftse #ftse100 @DailyFXTeam https://t.co/gC5fRZHKES
  • EU Commission to mobilise EUR 750bln for European recovery fund - EUR 500bln grants - EUR 250bln loans $EUR
  • BREAKING: Reports on the wires that the EU is considering an EUR750bn virus recovery plan. EU Commission to unveil details later today. #EUR #EuropeanUnion #COVID19
New Zealand Needs a Relief Rally to Take Eyes Off RBNZ Rate Cut Bets

New Zealand Needs a Relief Rally to Take Eyes Off RBNZ Rate Cut Bets

2016-01-23 00:56:00
Tyler Yell, CMT, Currency Strategist
Share:
New Zealand Needs a Relief Rally to Take Eyes Off RBNZ Rate Cut BetsNew Zealand Needs a Relief Rally to Take Eyes Off RBNZ Rate Cut Bets

Fundamental Forecast for the Kiwi:Bearish

Risk markets are no longer staring at the abyss as they were at the beginning of last week, which is benefitting markets like equities, Oil, & the New Zealand Dollar. From the start of the year, the New Zealand Dollar has been on its back foot as traders were quick to look at the slack of high-interest rates that the RBNZ could cutto get the economy running smoothly again. The apex of this ‘sell the kiwi against anything,’ move was after the disappointing CPI print on the 19th.

Inflation dropped to 0.1% YoY in the last quarter of 2015, showing the lowest print since 1999. Oil’s precipitous fall has hurt global inflation readings everywhere, and the RBNZ referenced China in their December meeting where they noted a further slowdown would, “warrant a mix of a lower New Zealand Dollar exchange rate and more-stimulatory monetary policy.” Most economists surveyed by Bloomberg do not expect a cut now, but rather in the spring if the global economy shows deterioration.

Since that statement, the growth in China has been tepid, and the maturation that goes from being a manufacturing economy to becoming a consumer economy has been awkward for the world’s second largest economy. Recent readings after the RBNZ’s statement showed growth in China did fall to 6.8% YoY in the last quarter of 2015, which was the lowest growth rate in 25-years, and well below the 7.2% & 7.6% growth rate in 2014 & 2013 respectively. These data points and the potential for others like it could keep New Zealand’s CPI below long-term averages giving the RBNZ further scope to cut next Wednesday.

After the RBNZ decision next week, we’ll see New Zealand Merchandise Trade Balance, which is expected to tick up from -779m to -131m due to a seasonality boost. Last month's print showed the widest annual trade deficit in 6.5 years.

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

DISCLOSURES

News & Analysis at your fingertips.