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
  • 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
  • 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
NZD/USD Falls Dramatically After Surprise RBNZ Rate Cut

NZD/USD Falls Dramatically After Surprise RBNZ Rate Cut

John Kicklighter, Varun Jaitly,

Talking Points:

  • NZD/USD drops nearly 2% on news of a surprise rate cut
  • RBNZ Governor Wheeler says New Zealand economy being hurt by low commodity prices
  • Wheeler notes Chinese demand as well as market volatility both weighing on NZ economy

NZD/USD fell sharply today after the RBNZ cut its official cash rate by 25 basis points to 2.25 percent, an unexpected move for the market. The rate cut comes after Monday’s exceptionally negative Chinese trade balance data, which sees its impact echoed in the RBNZ’s statement following the rate cut. In addition to external growth concerns stemming from China and global markets, the policy group noted domestic conditions are also being hurt by low commodity prices that have only very recently seen some modest signs of reprieve. New Zealand’s dairy sector is a major concern for the central bank as it is a major part of their economy, and continues to threaten reduced economic income driven by low prices.

The NZD/USD fell nearly 2 percent within less than a minute following the surprise rate cut. The shock factor seemed to flush much of the market reaction, but the announcement was accompanied by an even more dovish RBNZ report. In the statement, the central bank cites a number of domestic issues weighing on the economy aside from the dairy sector. Some of those concerns include pressures from housing and low headline inflation. The commodity prices incorporated in inflation remain a serious concern for countries that have a strong connection to the production of such raw materials and export industries. New Zealand – as a ‘comm bloc’ country – is certainly exposed to this. The CPI inflation gauge is currently at 0.1 percent and the RBNZ remains dubious of price pressures reviving in the near term. The central bank hopes that inflation will maintain its move towards their inflation goal, but global growth concerns are a clear headwind to expectations

In Governor Wheeler’s comments following the rate decision, a few highlights splashed across the financial headlines. In addition to concerns over global growth – and the trade implications for his country – the policy official remarked that he believes the IMF would downgrade its international growth forecasts when they are released in April. On China, the policymaker suggested the country is facing serious imbalances and that further devaluation of the Yuan could spread deflation across the globe. Speaking to the trend towards accommodative policy which has been so prolific these past years, Wheeler remarked that most central banks would like to see their currency cheaper.

Find key turning points for the NZD/USD with DailyFX SSI

NZD/USD Falls Dramatically After Surprise RBNZ Rate Cut

.

NZD/USD Falls Dramatically After Surprise RBNZ Rate Cut

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

DISCLOSURES