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
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here: https://t.co/x9rbQpPfWe https://t.co/2x1R5XTVea
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/uCaWQiu4Ly
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/g2To3LmUah
  • RT @michaeljburry: Read thread.
  • The Australian Dollar has retraced from August lows when looking at AUD/JPY and AUD/CAD. However, the AUD/NZD downtrend is intact, will a reversal there appear as well? Find out: https://t.co/8LmgqLLGJO https://t.co/AueigVsuk4
NZD/USD Rallies as RBNZ Says Rate Hikes To Keep on Coming

NZD/USD Rallies as RBNZ Says Rate Hikes To Keep on Coming

Baruch Spier,

Talking Points:

  • The RBNZ raised the Official Cash Rate to 3.00%
  • The central bank forecasted stronger inflation pressures
  • NZD/USD rallies despite exchange rate warnings

Want to trade with proprietary strategies developed by FXCM? Find out how here.

The Reserve Bank of New Zealand raised its Official Cash Rate for the second consecutive month in April, hiking the rate by 25 basis points to 3.00%, as was expected by all Bloomberg surveyed economists.

Following the initial rate release, the RBNZ announced that the extent of future rate hikes depends on data, and the central bank will continue to raise the Official Cash Rate until they are no longer adding to demand. The RBNZ added that the higher target rate should keep future changes in the Consumer Price Index near the central bank’s 2% target, as inflation pressures will increase over the next 2 years. The RBNZ also estimated that the GDP grew 3.5% in the first quarter of this year.

The RBNZ said that the current high exchange rate for the New Zealand Dollar is not sustainable and remains a headwind for exporters. The central bank said it will assess the impact of a high currency exchange rate on inflation pressures.

The RBNZ’s comments about further rate hikes and building inflation pressures was perceived by Kiwi traders as hawkish and indicative of further tightening of policy in the future, however the comments about the unsustainable exchange rate may have tamed bullish pressures in New Zealand Dollar trading.

NZD/USD 1-Minute: April 23, 2014

NZD/USD Rallies as RBNZ Says Rate Hikes To Keep on Coming

The New Zealand Dollar rose over 35 pips against the US Dollar following the release, and the pair may next find resistance by the 2013 high at .8676. Currency Analyst David Song warns that the bearish RSI divergence highlights risk for a larger NZD/USD decline.

Chart created by Baruch Spier using Marketscope 2.0. Add DailyFX Support/Resistance to your charts at FXCM Apps.

-- Written by Baruch Spier, DailyFX Research. Feedback can be sent to instructor@dailyfx.com .

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

DISCLOSURES