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 Australian Dollar remains vulnerable to most of its major counterparts, with AUD/USD and AUD/JPY resuming losses. Did AUD/NZD bottom? AUD/CAD may consolidate. Get your weekly Australian Dollar forecast from @ddubrovskyFX here: https://t.co/sjh91mjtXs https://t.co/dGT067zKnH
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/VLZQhrQTAf
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here: https://t.co/m920Uvmngm https://t.co/yQYtfHf66s
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/Dqq9S9vGvo
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/lccPTTlvj0
  • GBP/USD’s consolidation could end soon if price breaks out of a symmetrical triangle in play since July. At this time, a downside breakout is likely following the appearance of a death cross. Get your weekly $GBP forecast from @DColmanFX here: https://t.co/WIKdSesfkJ https://t.co/Fx0qr32xgI
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/IRS9MaA7h8
  • The Federal Reserve rate decision is likely to sway the near-term outlook for the price of gold as the central bank appears to be on track to scale back monetary support. Get your weekly gold forecast from @DavidJSong here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/CHF/2021/09/18/Gold-Price-Outlook-Hinges-on-Fed-Rate-Decision-Forward-Guidance.html https://t.co/dWWxtErjK0
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/4qxwiJsV1K
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