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
Mixed
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • US macro data were largely mixed overnight, with the initial jobless claims showing further weakness while durable goods orders beat expectations. The weekly jobless claim report registered 778k for the week ending Nov 21, marking a fifth-week high (chart below). https://t.co/ds0pgYjFoV
  • Singapore's Straits Times Index might be vulnerable to a technical pullback after rising more than 19% in November. An immediate support level can be found at 2,800. https://t.co/Jb8nuo0Gg2
  • Gold and silver prices have come under significant pressure recently. However, this correction lower could prove short-lived as price analysis hints at a reversal higher. Get your $XAUUSD market update from @DanielGMoss here:https://t.co/K1qL0fsGwy https://t.co/lvDggOLCCR
  • Australian Dollar to Rise as Easing Border Restrictions Buoy Sentiment - https://www.dailyfx.com/forex/market_alert/2020/11/26/Australian-Dollar-to-Rise-as-Easing-Border-Restrictions-Buoy-Sentiment.html $AUD $AUDJPY $AUDUSD https://t.co/izMcqggHOC
  • 🇰🇷 Interest Rate Decision Actual: 0.5% Expected: 0.5% Previous: 0.5% https://www.dailyfx.com/economic-calendar#2020-11-26
  • Bank of Korea: 2020 GDP growth seen at -1.1% versus -1.3% projected in August, 2021 GDP growth seen at 3.0% versus 2.8% anticipated prior -BBG
  • Heads Up:🇰🇷 Interest Rate Decision due at 01:00 GMT (15min) Actual: 0.5% Expected: 0.5% Previous: 0.5% https://www.dailyfx.com/economic-calendar#2020-11-26
  • 7 out of 11 Dow Jones sectors ended lower, with about 63.3% of the index’s constituents closing in the red. Energy (-3.64%) , materials (-2.25%) and communication services (-1.24%) were among the worst performers on Wednesday. https://t.co/5MfrUSOYw4
  • Australian Private Capital Expenditure -3.0% in Q3 vs -1.5% expected and from -6.4% in Q2 (revised worse from -5.9%), $AUDUSD little changed so far -BBG
  • RT @FxWestwater: New Zealand Dollar Forecast: $NZDUSD May Rise Over Thanksgiving Holiday Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/11/26/New-Zealand-Dollar-Forecast-NZDUSD-May-Rise-Over-Thanksgiving-Holiday.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.co/dJMDOV…
NZD/USD Risks Near-Term Correction on RBNZ Verbal Intervention

NZD/USD Risks Near-Term Correction on RBNZ Verbal Intervention

2017-08-05 04:20:00
David Song, Strategist
Share:
NZD/USD Risks Near-Term Correction on RBNZ Verbal Intervention

Fundamental Forecast for New Zealand Dollar: Bearish

NZD/USD may exhibit a more bearish behavior in the week ahead should the Reserve Bank of New Zealand (RBNZ) show a greater willingness to preserve the record-low cash rate throughout 2017.

Sign Up and Join the DailyFX Team LIVE to Cover the RBNZ Rate Decision

The downtick in the 2Q Consumer Price Index (CPI) accompanied by the unexpected contraction in New Zealand Employment may encourage the RBNZ to adopt a more cautious tone at the August 10 meeting especially as ‘GDP growth in the March quarter was lower than expected.’ As a result, the series of below-forecast figures may keep the central bank on the sidelines beyond Governor Graeme Wheeler’s departure in September as Deputy Governor Grant Spencer takes the helm for the next six-months.

At the same time, the RBNZ may follow a similar approach to its Australian counterpart, and like the Reserve Bank of Australia (RBA), Governor Wheeler and Co. may toughen the verbal intervention on the local currency as officials argue ‘a lower New Zealand dollar would help rebalance the growth outlook towards the tradables sector.’ As a result, dovish remarks from the RBNZ may generate a bearish reaction in NZD/USD, with the exchange rate at risk for a larger correction as it pulls back from the 2017-high (0.7558).

NZD/USD Daily Chart

NZD/USD Risks Near-Term Correction on RBNZ Verbal Intervention

Download the DailyFX 3Q Forecasts

The broader outlook for NZD/USD has become more constructive as the pair clears the range from 2016, but the lack of momentum to close above the 0.7350 (23.6% expansion) hurdle raises the risk for a near-term correction as the pair fails to preserve the narrow range carried over from the previous week. In turn, the Relative Strength Index (RSI) may continue to pullback from overbought territory, with a close below the 0.7400 (38.2% expansion) handle opening up the former-resistance zone around 0.7330 (38.2% retracement) to 0.7350 (23.6% expansion), which may offer support.

NZD/USD Retail Sentiment

NZD/USD Risks Near-Term Correction on RBNZ Verbal Intervention

Check out the new gauge developed by DailyFX based on trader positioning

Retail trader data shows 23.5% of traders are net-long NZD/USD with the ratio of traders short to long at 3.25 to 1. In fact, traders have remained net-short since May 24 when NZD/USD traded near 0.68667; price has moved 7.9% higher since then. The number of traders net-long is 8.6% lower than yesterday and 7.3% lower from last week, while the number of traders net-short is 2.2% lower than yesterday and 9.4% higher from last week.

Sign up for David's e-mail distribution list

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

DISCLOSURES