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
Mixed
Oil - US Crude
Bullish
Wall Street
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
Gold
Bullish
GBP/USD
Mixed
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
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/ltEO5dpKux
  • WTI crude oil is currently trading up against major resistance via the 2019 and 2020 highs within the confines of a channel; something has to give. Get your market update from @PaulRobinsonFX here: https://t.co/MO9foRjm2y https://t.co/YhBFdvZDEb
  • The Dow Jones and S&P 500 outlook appears bleak in the near term as retail traders increase their upside exposure. At the same time, these indices confirmed bearish technical warning signs. Get your market update from @ddubrovskyFX here:https://t.co/fKCHELbOxo https://t.co/eVDwmFTaIg
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/8B8hqHahm1
  • The US Dollar finished off an eventful week after CPI and retail sales injected volatility into markets. FOMC is now in the Greenback’s sights as taper talks linger. Get your market update from @FxWestwater here: https://t.co/MHi0lfQ93j https://t.co/4XetwYAaNd
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/ZZRLV0Wkea
  • The Nasdaq 100 index has likely formed a bearish Gartley pattern, which hints at further downside potential. Negative MACD divergence on the weekly chart suggests that upward momentum may be fading. Get your market update from @margaretyjy here: https://t.co/GkMEkVA7YR https://t.co/E1vyCMVt6K
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1G4lMu https://t.co/2TpkkUu7Hg
  • Tesla boss Elon Musk is seemingly running the cryptocurrency market single-handed this week with his tweets prompting a massive sell-off before today’s sharp rally. Get your market update from @nickcawley1 here: https://t.co/qGci02osOP https://t.co/Yp24Sakrfl
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/LDP3HlN4A3
NZD/USD Rate Vulnerable to Reserve Bank of New Zealand (RBNZ) Rate Cut

NZD/USD Rate Vulnerable to Reserve Bank of New Zealand (RBNZ) Rate Cut

David Song, Strategist

New Zealand Dollar Talking Points

NZD/USD bounces back after five consecutive days of decline, but the exchange rate may exhibit a more bearish behavior as the Reserve Bank of New Zealand (RBNZ) is expected to lower the official cash rate (OCR) to a fresh record low.

NZD/USD Rate Vulnerable to Reserve Bank of New Zealand (RBNZ) Rate Cut

NZD/USD trades on a firmer footing after marking the longest losing streak since late July, and the exchange rate may stage a larger rebound ahead of the RBNZ meeting as it snaps the series of lower highs and lows from the previous week.

Image of DailyFX economic calendar

However, the RBNZ is expected to deliver a 25bp rate cut at its last meeting for 2019, and the New Zealand Dollar may face a bearish reaction if Governor Adrian Orr and Co. reiterate that “there remains scope for more fiscal and monetary stimulus if necessary.”

It remains to be seen if the RBNZ will continue to push monetary policy into uncharted territory as Deputy GovernorGeoff Bascand reveals that “the Reserve Bank is undertaking further preparatory work on less conventional monetary policy tools.”

The comments suggest the RBNZ will continue to take a preemptive approach in managing monetary policy in order to “demonstrate our ongoing determination to ensure inflation increases to the mid-point of the target.

Image of RBNZ interest rate decisions

Nevertheless, the New Zealand Institute of Economic Research (NZIER) Policy Shadow Board has called “for the OCR to be kept on hold” following the 50bp reduction in August, with the group pointing to the financial stability risks that stem from interest rates being too low.

In turn, the New Zealand Dollar remains exposed to the dovish forward guidance for monetary policy, and the rebound from the 2019-low (0.6204) may continue to unravel if the RBNZ continues to embark on its rate easing cycle.

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 NZD/USD daily chart

Source: Trading View

  • Keep in mind, the broader outlook for NZD/USD remains tilted to the downside as the exchange rate trades to a fresh yearly-low (0.6204) in October.
  • However, failure to break/close below the Fibonacci overlap around 0.6180 (161.8% expansion) to 0.6210 (78.6% expansion) has spurred a near-term correction in the exchange rate.
  • With that said, the lack of momentum to test the former-support zone around 0.6490 (50% expansion) to 0.6520 (100% expansion) suggests the correction is nearing an end especially as the Relative Strength Index (RSI) snaps the bullish formation carried over from September.
  • As a result, the string of failed attempts to close above the overlap around 0.6400 (61.8% retracement) to 0.6430 (78.6% expansion) brings the downside targets on the radar, with a break/close below the 0.6310 (100% expansion) region opening up the 0.6180 (161.8% expansion) to 0.6210 (78.6% 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