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
Wall Street
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
More View more
Real Time News
  • The S&P 500, Dow Jones and DAX 30 could be at risk of falling as retail traders continue increasing their upside exposure in these indices. What are the key technical levels to watch for? Find out from @ddubrovskyFX here:https://t.co/OJByiwIppr https://t.co/P1iOONG90N
  • The US Dollar continues to hold its ground against most ASEAN currencies as recent downtrends lose momentum. What is the road ahead for USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:https://t.co/UcleaZEAaW https://t.co/62bGLvt8fE
  • The Canadian Dollar has been caught in broad ranges against the Euro and the US Dollar, but can the upside bias in USD/CAD and EUR/CAD prolong? Find out here:https://t.co/8DubboXsjv https://t.co/A0sIYo2iP1
  • Want to hear my thoughts on the US Dollar? Check out yesterday's recording with #AuzBiz hosted by @KaraOrdway on 'The Trade' We discussed a #USD index, Treasury yields, $USDJPY, $AUDUSD and $NZDUSD https://t.co/yxwquL1btp https://t.co/RtWjlN6kpv
  • Gold has plunged nearly 5% off the Monthly high with the sell-off now probing key weekly support here at 1738/47- looking for a pivot here with the Fed interest rate decision on tap. Get your $XAUUSD market update from @MBForex here:https://t.co/Vnxi41lETt https://t.co/FyZuHNzsU3
  • Feels like the market has been front-running next week’s FOMC announcement, which will reveal updated dot plot projections. Expectations clearly set for a more hawkish shift in guidance. That said, if the Fed does not deliver, US Dollar bulls could be disappointed. $USD $DXY https://t.co/o2v6ibac3L
  • USD/CAD has been chopping around the past week-and-a-half, offering virtually no cues on its next direction. Get your market update from @PaulRobinsonFX here:https://t.co/eq1YkOa3mC https://t.co/V6h8BjyeGa
  • FDA panel votes 16-3 against approving Covid-19 booster shots - BBG
  • RT @C_Barraud: 🇺🇸 Americans Haven’t Been This Down on #Housing Market Since 1982 - Bloomberg *Link: https://t.co/wWFnbAwIDO https://t.co/6G…
  • US Dollar Price Action Setups Pre-FOMC: EUR/USD, GBP/USD, USD/CAD https://www.dailyfx.com/forex/analyst_picks/todays_picks/james_stanley/2021/09/17/US-Dollar-Price-Action-Setups-pre-FOMC-EURUSD-EUR-USD-GBP-USD-GBPUSD-USD-CAD-USDCAD.html https://t.co/J25MYsXCa9
RBNZ To Maintain Rate Through Year End, Signals 2014 Rise

RBNZ To Maintain Rate Through Year End, Signals 2014 Rise

Jimmy Yang,

Talking Points:

  • The Reserve Bank of New Zealand keeps interest rate at 2.50 percent, sees overvalued Kiwi
  • RBNZ expects to maintain rate through year end with rise in 2014 as heated housing market adds inflationary pressures
  • Governor Wheeler looking towards US Dollar price action to devalue the Kiwi

The Kiwi strengthened against the US Dollar as the Reserve Bank of New Zealand kept its benchmark interest rate unchanged at 2.50 percent. Although the central bank finds the New Zealand dollar overvalued, it expects to maintain this rate through the end of the year and says it will likely rise in 2014. The RBNZ’s reluctance in lowering rate likely comes from price stability concerns over the country’s high commodity export prices and heated housing market. Instead, Governor Graeme Wheeler is hoping to see a rise in the US Dollar to help relieve bullish pressures on the Kiwi.

Price action for the US Dollar will likely come from investors weighing their monetary policy expectations on US developments. The main event risk will be the FOMC rate decision on September 18 where the committee is widely expected to announce a reduction in the Fed’s monthly asset purchases. But more importantly, rhetoric from the meeting could deteriorate risk sentiment and compel investors to unwind carry trade such as NZD/USD and move the pair lower.

NZD/USD (5-Minute Chart)

RBNZ_To_Maintain_Rate_Through_Year_End_Signals_2014_Rise_body_Picture_1.png, RBNZ To Maintain Rate Through Year End, Signals 2014 Rise

Source: FXCM Marketscope

New to Forex? Watch this introduction video

Jimmy Yang, DailyFX Research Team

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

DISCLOSURES