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
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/KMmPnHt3Ce
  • RBA Minutes: Rate rise conditions unlikely met until 2024 at earliest, changing 3-year yield target from 0.1% not warranted. Will continue bond buys if assists progress towards goals -BBG $AUDUSD #RBA
  • RT @BrendanFaganFx: Japanese Yen Analysis: USD/JPY Points Higher as GDP Data Misses Expectations $USDJPY Link: https://www.dailyfx.com/forex/market_alert/2021/05/18/Japanese-Yen-Analysis-USDJPY-Points-Higher-as-GDP-Data-Misses-Expectations.html
  • Heads Up:🇦🇺 RBA Meeting Minutes due at 01:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-18
  • Japan's Economic Minister Yasutoshi says Q1 GDP drop due largely to dip in consumption - BBG
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: https://t.co/bTXkGN1CIM #DailyFXGuides https://t.co/hJeqJek0Ai
  • 🇯🇵 GDP Growth Rate QoQ Prel (Q1) Actual: -1.3% Expected: -1.2% Previous: 2.8% https://www.dailyfx.com/economic-calendar#2021-05-17
  • 🇯🇵 GDP Growth Annualized Prel (Q1) Actual: -5.1% Expected: -4.6% Previous: 11.6% https://www.dailyfx.com/economic-calendar#2021-05-17
  • Heads Up:🇯🇵 GDP Growth Rate QoQ Prel (Q1) due at 23:50 GMT (15min) Expected: -1.2% Previous: 2.8% https://www.dailyfx.com/economic-calendar#2021-05-17
  • Heads Up:🇯🇵 GDP Growth Annualized Prel (Q1) due at 23:50 GMT (15min) Expected: -4.6% Previous: 11.7% https://www.dailyfx.com/economic-calendar#2021-05-17
New Zealand Dollar Gains as RBNZ’s Wheeler Cools Rate Cut Bets

New Zealand Dollar Gains as RBNZ’s Wheeler Cools Rate Cut Bets

Daniel Dubrovsky, Strategist

Talking Points

  • The New Zealand Dollar appreciated against its major peers in early Asia trade
  • RBNZ’s Governor Wheeler announced that they don’t see a need for rapid easing
  • New Zealand front-end government bond yields rally hinting ebbing rate cut bets

Having trouble trading the New Zealand Dollar? This may be why.

The New Zealand Dollar gained against its major peers as RBNZ’s Governor Graeme Wheeler presented a speech in Dunedin. Wheeler started off his speech by announcing that they do not see a need for rapid easing. He added that such action would result in unsustainable growth and would further inflame the property market.

However, RBNZ’s Wheeler said that the bank is not advocating inaction. The central bank added that it will modify policy setting if risks warrant it. The central bank’s Governor also mentioned that a low headline inflation could damp price expectations, the key reason for August’s interest rate reduction was as a result of inflation expectations.

This speech follows a highly anticipated monetary policy announcement in which the Reserve Bank of New Zealand cut rates and hinted that it will wait to reassess the need for another rate cut. At the time of this market alert, overnight index swaps are pricing in at least one RBNZ rate cut over the next 12 months. New Zealand 2 year government bond yields rallying during Wheeler’s speech likely suggests that he cooled near term rate cut expectations.

Meanwhile, the DailyFX Speculative Sentiment Index (SSI) is showing a reading that roughly 73 percent of open speculative retail positions in NZD/USD are short. The SSI is typically a contrarian indicator, implying further NZD/USD strength ahead.

Want to learn more about the DailyFX SSI indicator? Click here to watch a tutorial.

New Zealand Dollar Gains as RBNZ’s Wheeler Cools Rate Cut BetsNew Zealand Dollar Gains as RBNZ’s Wheeler Cools Rate Cut Bets

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

DISCLOSURES