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.

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
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
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
USD/JPY
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
More View more
Real Time News
  • The US Dollar Index is roaring higher, lead by sharp declines in AUD/USD and EUR/USD $USD $DXY https://t.co/Ll2DBRKEMo
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.04% Gold: -2.20% Silver: -3.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nk9eEDzXhv
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.13%, while traders in GBP/JPY are at opposite extremes with 67.63%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/5dXf6fqsQz
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: France 40: 0.41% Germany 30: 0.36% FTSE 100: 0.34% US 500: -0.05% Wall Street: -1.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/fFsUz2EvOi
  • The US Dollar is continuing to strength today. The $DXY has risen above the 90.80 level to its highest point since last Wednesday. $USD https://t.co/OFWBlH3loM
  • quite the reversal in commod currencies over the past two days. $USDCAD from falling wedge support to resistance. this tl held a number of inflections earlier this month, now being tested through https://t.co/O2zqFkYz9Y https://t.co/Rljf0c6JE3
  • $USDCHF rose to trading above the 0.9100 level for the first time since November. $USD $CHF https://t.co/afJSa3Ap5h
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.86%, while traders in GBP/JPY are at opposite extremes with 67.99%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/7CenEe3hcL
  • Hey traders! Wrap up your week with a quick market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/9Sfqv1U0TJ
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -2.02% Gold: -2.70% Silver: -4.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/pOc7rwbN4x
New Zealand Dollar Climbs Despite An RBNZ Rate Cut

New Zealand Dollar Climbs Despite An RBNZ Rate Cut

Daniel Dubrovsky, Strategist

Talking Points:

  • RBNZ cuts its Official Cash Rate 25 basis points from 3.25% to 3.00%
  • Despite the rate cut, the New Zealand Dollar climbs 1.3% versus the US Dollar
  • RBNZ rhetoric dovish but perhaps not as aggressive as anticipated

The New Zealand Dollar climbed more than 1.3 percent (over 85 pips) versus the US Dollar. The gain came after the Reserve Bank of New Zealand cut its benchmark lending rate by 25 basis points for a second consecutive meeting. This is the first time the central bank cuts its cash rate in subsequent meetings since 2009 and continues to reverse a period of rate hikes the central bank engaged in through 2014.

The RBNZ said New Zealand’s economy is currently growing at an annual rate of roughly 2.5 percent. Compared to June’s Official Cash Rate Statement, this update is a softer growth outlook. The policy authority went on to say inflation is still below the central bank’s 1% to 3% target and it sees CPI returning to 2 percent in early 2016. As for the currency itself, its sees further depreciation as necessary given the weakness in export commodity prices. So far, the bank judges Kiwi’s depreciation has provided support to the export and import competing sectors.

Overall, the bank judged that a reduction in the cash lending rate was warranted by a softening economic outlook and low inflation. It also noted that some further easing is likely. This is where the unexpected reaction from the currently likely comes from. The Kiwi’s climb reflects that this outcome was largely expected – overnight swaps (a market proxy) were pricing in a 100% chance of a 25 bps rate cut. The bank did follow through with expectations, but not necessarily with the commitment to further easing that was anticipated. Looking at government bond yields: 2, 5, and 7 year yields climbed in the aftermath of the rate decision. Only 10 year government bond yields declined.

NZDUSD VS JULY RBNZ RATE DECISION

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

DISCLOSURES