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
EUR/USD
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
Oil - US Crude
Bullish
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
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/yXomAftdv8 https://t.co/wOQAHZVnxB
  • Forex trading, which is the act of exchanging fiat currencies, is thought to be centuries old – dating back to the Babylonian period. Learn about the history of Forex here:https://t.co/ePTJlbUP7c https://t.co/WS2LkCt9gX
  • Two major events will dominate #Euro trading in the coming week: an #ECB meeting on Eurozone monetary policy, followed by an #EU summit to reach agreement on a recovery fund. Get your #currencies update from @MartinSEssex here: https://t.co/wnXjTDizMv https://t.co/tmxDfkgmSv
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/UQRaKusFP7
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here:https://t.co/vg7w10la3j https://t.co/nUvvI3WQpx
  • Australian Dollar is up fractionally this week with Aussie stalling just below the yearly range highs. Here are the levels that matter on the $AUDUSD technical chart. Get your #currencies update from @MBForex here: https://t.co/jYzBK1qH4s https://t.co/gYj4tFbsGS
  • What is the road ahead for equities this coming week? Check out my fundamental outlook below! #DowJones #SP500 #DAX30 #FTSE100 https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2020/07/11/Dow-Jones-SP-500-DAX-30-FTSE-100-Outlook-Stocks-Week-Ahead.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/HjIBDKqwvO
  • #Gold price gains seem to depend on monetary stimulus expansion and may turn lower as contraction of the Federal Reserve’s balance sheet underpins the US Dollar. Get your #metals update from @DanielGMoss here: https://t.co/8NHLc8jdhw https://t.co/0YYKXqtY9V
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/OjTZOQEytM https://t.co/DDCWX1In7k
  • The US Dollar is pressured as rising coronavirus cases fail to dent 2021 GDP bets. Could the Singapore Dollar, Indonesian Rupiah, Philippine Peso and Malaysian Ringgit rise? Find out from @ddubrovskyFX here:https://t.co/u1qhaIGGoC https://t.co/kvFgxQjLb0
NZD/USD Rate to Consolidate Amid Failed Test of Former Support

NZD/USD Rate to Consolidate Amid Failed Test of Former Support

2019-11-25 06:00:00
David Song, Strategist
Share:

New Zealand Dollar Talking Points

NZD/USD trades near the monthly high (0.6466) ahead of the Reserve Bank of New Zealand’s (RBNZ) Financial Stability Review (FSR), but the exchange rate may consolidate over the remainder of the month as the rebound from the yearly low (0.6204) fails to produce a test of the former support zone around 0.6490 (50% expansion) to 0.6520 (100% expansion).

NZD/USD Rate to Consolidate Amid Failed Test of Former Support

NZD/USD attempts to extend the advance following the RBNZ’s last meeting for 2019 as the central bank decided to keep the official cash rate (OCR) at the record low of 1.00%.

It seems as though the RBNZ will stick to the sidelines at its first meeting for 2020 as “recent monetary stimulus was flowing through the economy and supporting the medium-term growth projections.

In turn, the updates to the FSR may also tame speculation for lower interest rates as “the Committee agreed that the reduction in the OCR over the past year was transmitting through the economy and that it would take time to have its full effect.” The wait-and-see approach for monetary policy may keep NZD/USD afloat as the central bank appears to be in no rush to further embark on its rate easing cycle.

However, recent comments from RBNZ Assistant Governor Christian Hawkesby suggests the central bank will continue insulate the New Zealand economy as the board is “very open and willing to provide more stimulus if it’s required.” In addition, Mr. Hawkesby insists that every meeting is a “live meeting and we would be willing to change interest rates if the information and facts warrant the change.”

Image of RBNZ interest rate decisions

The comments suggest the RBNZ is in no rush to implement lower interest rates following the 50bp rate cut in August, and Governor Adrian Orr may strike a similar tone at the news conference slated for later this week amid renewed hopes for a US-China trade deal.

With that said, a batch of less dovish remarks may spark a bullish reaction in the New Zealand Dollar, but NZD/USD may largely consolidate over the remainder of the month as the rebound from the yearly low (0.6204) fails to produce a test of the former support zone around 0.6490 (50% expansion) to 0.6520 (100% expansion).

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 rate 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) may generate range bound conditions especially as the Relative Strength Index (RSI) snaps the bullish formation carried over from September.
  • As a result, the string of failed attempts to break/close above the overlap around 0.6400 (61.8% retracement) to 0.6430 (78.6% expansion) may spur a move towards 0.6370 (50% retracement), with the next area of interest coming in around 0.6310 (100% expansion).

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

News & Analysis at your fingertips.