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.

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
Subscribe
Please try again
EUR/USD
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
Oil - US Crude
Mixed
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
Bullish
GBP/USD
Bullish
USD/JPY
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
More View more
Real Time News
  • RT @KyleR_IG: First gaslighting, and now the silent treatment. This isn't a healthy relationship.
  • NDRC halts activities under China-Australia economic dialogue [update via Bloomberg] - cites Australia's disruption of cooperations with China $AUDUSD slipping lower, falling to lows of the day, China is AU's largest trading partner, feeling disruption woes #AUD #NDRC https://t.co/xQ8W11UVL2
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: 0.00% Oil - US Crude: -0.13% Silver: -0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/rO6XynukTE
  • The US Dollar still remains under pressure against most ASEAN currencies heading into May. A busy week awaits the Indonesian Rupiah, Thai Baht, Philippine Peso and Singapore Dollar. Get your market update from @ddubrovskyFX here:https://t.co/Ed95511S7Y https://t.co/8lJQ0eheXN
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.13% 🇦🇺AUD: 0.05% 🇪🇺EUR: 0.03% 🇬🇧GBP: 0.01% 🇨🇭CHF: -0.05% 🇯🇵JPY: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/5vSj1gpuhD
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 89.94%, while traders in France 40 are at opposite extremes with 81.32%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/w9YlTeEscN
  • Dogecoin continues to trade higher with explosive energy, attesting to the cryptocurrency's new clout. Meanwhile, Bitcoin and Ethereum sink. Get your market update from @FxWestwater here:https://t.co/ohw714KqB2 https://t.co/7tbKUVpC3F
  • S&P 500 Index May Lead Nikkei 225 and ASX 200 Higher Amid Reflation Theme https://www.dailyfx.com/forex/market_alert/2021/05/06/SP-500-Index-May-Lead-Nikkei-225-and-ASX-200-Higher-Amid-Reflation-Theme.html https://t.co/7bBBmKeVUR
  • RT @Sonnenshein: ANNOUNCEMENT: We're excited to kick off our partnership with the @Giants making @Grayscale the first #crypto sponsor of an…
  • Natural gas prices moved higher, capturing a long-term trendline that could support the heating commodity's price in the coming weeks as colder temps support fundamental side. Get your market update from @FxWestwater here:https://t.co/tGUDJE9hn0 https://t.co/Wpu8eWHIXz
Kiwi Gains After Dovish Fed, But Shift in Stance from RBNZ Doubtful

Kiwi Gains After Dovish Fed, But Shift in Stance from RBNZ Doubtful

Oliver Morrison, Analyst
Kiwi Gains After Dovish Fed, But Shift in Stance from RBNZ Doubtful

Fundamental Forecast for NZD/USD: Bearish

- NZD/USD gains were driven primarily by the FOMC, not positive data from New Zealand.

- Recent data from New Zealand has actually been disappointing – GDP especially.

- GDP print means RBNZ is unlikely to alter its accommodative stance on rates at its meeting on March 23.

The New Zealand Dollar gained on the US Dollar this week as markets evinced disappointment that the US Federal Reserve wasn’t more hawkish on interest rates after raising them on Wednesday. However, the Kiwi has given back some of those gains since, with softer economic data hammering home the dovish message from the Reserve Bank of New Zealand, which held the official cash rate steady at record lows of 1.75% at its February policy meeting, and suggested that it could remain there for two years or more. The RBNZ Governor added that the currency ought to be lower than current market pricing.

Earlier this week, the Kiwi fell against its major counterparts after fourth quarter GDP data missed expectations. New Zealand’s economy grew 2.7% y/y versus 3.2% expected and 3.3% in the third quarter (revised lower from 3.5%). The nation’s output increased by 0.4% q/q versus 0.7% expected and 0.8% prior (also revised lower from 1.1%). This marked the slowest pace of quarterly expansion since July 2015. Front end New Zealand government bond yields fell simultaneously with the data’s release.

Data were mixed on Friday, with the March consumer confidence index from lender ANZ and research firm Roy Morgan slipping 1.7% on the month to 125.2. This came after news that New Zealand’s manufacturing sector expanded strongly in February. The Performance of Manufacturing Index came in at 55.2 for the month, well above January’s revised 52.2. This series is analogous to the Purchasing Managers Indexes (PMIs) released globally. Any reading above the 50 line signifies sectoral expansion. The index is now at its highest level since last September and January’s PMI dip now looks largely seasonal in nature.

Next week’s docket is sparse, apart from the RBNZ rate decision on Wednesday. The New Zealand Consumer Sentiment Index will be released Sunday, followed by Dairy Auction Prices on Tuesday, and Trade Balance figures on Thursday. None of these data should hold too much influence with the RBNZ decision on tap.

At the March 23 policy meeting, the RBNZ is once again expected to maintain the official cash rate at 1.75%, and continue to push a neutral if not dovish bias. At the previous RBNZ decision, Governor Wheeler made clear the intention to keep rates at their present level for the entirety of 2017, dispensing any rate hike expectations markets had priced in for this year. Likewise, given his complaints that the Kiwi was overvalued and that global risks remain – a clear reference to the rise of protectionism, led by the United States and the United Kingdom – there seems little reason to believe that, with recent GDP data having disappointed, the RBNZ will upgrade its tone. –OM

Want trade ideas? Check out the DailyFX Trading Guides

--- Written by Oliver Morrison, Market Analyst

To contact Oliver, email him at oliver.morrison@ig.com

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

DISCLOSURES