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. See our updated Privacy Policy here.

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
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
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
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Gold are long at 84.85%, while traders in France 40 are at opposite extremes with 75.76%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9FBAOSUkA5
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 1.88% Gold: 1.04% Oil - US Crude: -0.39% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/CTOzYyUZ0r
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.09% 🇪🇺EUR: 0.07% 🇨🇭CHF: -0.10% 🇨🇦CAD: -0.16% 🇬🇧GBP: -0.24% 🇳🇿NZD: -0.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/SxtA2i2fRq
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/bZEFtp8kFe https://t.co/vBkN4uScVN
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: France 40: 0.14% Wall Street: 0.02% US 500: 0.00% Germany 30: -0.31% FTSE 100: -0.55% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/1DqihMnbIE
  • EUR/JPY IG Client Sentiment: Our data shows traders are now net-long EUR/JPY for the first time since Mar 10, 2021 when EUR/JPY traded near 129.31. A contrarian view of crowd sentiment points to EUR/JPY weakness. https://www.dailyfx.com/sentiment https://t.co/59zAMabrWa
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/fW0bZwEmyN
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/zwj1GW1Isz
  • 🇵🇱 Employment Growth YoY (MAY) Actual: 2.7% Expected: 2.5% Previous: 0.9% https://www.dailyfx.com/economic-calendar#2021-06-18
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Gold are long at 83.48%, while traders in France 40 are at opposite extremes with 75.51%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/HMT6LyyKQO
NZDUSD Rate Eyes 2019 Low Ahead of RBNZ Amid Threat of Currency War

NZDUSD Rate Eyes 2019 Low Ahead of RBNZ Amid Threat of Currency War

David Song, Strategist

New Zealand Dollar Talking Points

NZDUSD trades near the 2019-low (0.6482) as the escalating trade dispute between the US and Chinaputs pressure on the Reserve Bank of New Zealand (RBNZ) to implement lower interest rates.

NZDUSD Rate Eyes 2019 Low Ahead of RBNZ Amid Threat of Currency War

The People’s Bank of China’s (PBOC) decision to weaken the Yuan reference rate comes in response to the new round of US tariffs, and the threat of a currency war may push the RBNZ to insulate the New Zealand economy as “members agreed that more support from monetary policy was likely to be necessary.

Image of DailyFX economic calendar

The RBNZ is expected to cut the official cash rate (OCR) to a fresh record low of 1.25% at the upcoming meeting on August 7, and Governor Adrian Orr and Co. may continue to push monetary policy into unchartered territory amid the weakening outlook for the Asia/Pacific region.

Image of RBNZ official cash rate

In turn, the New Zealand Dollar stands at risk of facing a more bearish fate especially if the RBNZ endorses a dovish forward guidance for monetary policy, but it remains to be seen if the central bank will implement lower interest rates throughout the remainder of the year as “domestic GDP growth had held up more than projected in the March 2019 quarter.

With that said, a less dovish policy statement may curb the recent decline in NZDUSD, and the RBNZ may take a more reactionary approach in managing monetary policy as “several central banks are now expected to ease monetary policy to support demand.

Keep in mind, the broader outlook for NZDUSD remains mixed as the decline from the March-high (0.6939) fails to spur a run at the 2019-low (0.6482), but recent developments in the Relative Strength Index (RSI) warn of a further decline in the exchange rate as the oscillator snaps the bullish formation from earlier this year.

Sign up and join DailyFX Currency Strategist David Song LIVE for an opportunity to discuss potential trade setups.

NZD/USD Rate Daily Chart

Image of nzdusd daily chart
  • The 2019-low (0.6482) sits on the radar for NZDUSD as the exchange rate extends the series of lower highs and lows from the previous week, while the Relative Strength Index (RSI) snaps the bullish formation from earlier this year and approaches oversold territory.
  • Need a break/close below the Fibonacci overlap around 0.6490 (50% expansion) to 0.6520 (100% expansion) to open up the next downside hurdle around 0.6370 (50% retracement) to 0.6430 (78.6% expansion), which largely lines up with the 2018-low (0.6424).
  • However, another failed attempt to break/close below the support zone around 0.6490 (50% expansion) to 0.6520 (100% expansion) may generate a near-term rebound in NZDUSD, with the first region of interest coming in around 0.6600 (23.6% retracement) to 0.6630 (78.6% expansion) followed by the 0.6710 (61.8% expansion) to 0.6740 (23.6% expansion) area.

Additional Trading Resources

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.

Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2019.

--- Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES