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
More View more
Real Time News
  • $BTCUSD hits 65,000. Happy Bitcoin day everyone
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 91.49%, while traders in USD/JPY are at opposite extremes with 74.20%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/TBOioxBaqY
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Silver: 1.67% Gold: 0.62% Oil - US Crude: -1.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/3L8HLnD5v8
  • #Bitcoin - Daily Chart - breakout to ATH . . Watch the close. . . https://t.co/W75XZqabYP
  • Now that the Bitcoin ATH is out of the way - BTC +2.1% @ $65,540 - can we concentrate on Ethereum #btc #bitcoin #eth #ethereum https://t.co/jka7AcE27J
  • Hit series ‘Squid Game’ expected to drive subscriber growth into year end. Get your market update from @RichardSnowFX here:https://t.co/fQBG9dlLfG https://t.co/4KjKPA6u8d
  • $EURUSD res has held at that 1664 spot but buyers stepped-in for some higher-low support, right around prior resistance. could have some continuation left here, next res zone 1700-1736 $EURUSD move will be key to #DXY dynamics https://t.co/oSPWzxUtCg https://t.co/0jBF75ztJe
  • Mid-Week Market Update session with special guest @tastytrade's @tastytradeRyan starting now -- join here: https://t.co/2VlNFcWn8R
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: France 40: 0.12% US 500: 0.09% Wall Street: 0.02% Germany 30: -0.17% FTSE 100: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/JOBV3OpuX9
  • RT @carlquintanilla: B of A: “The virus situation is improving rapidly and this has helped spur a pick-up in activity. .. Air travel contin…
New Zealand Dollar Falls as RBNZ Holds Rates and Changes GDP View

New Zealand Dollar Falls as RBNZ Holds Rates and Changes GDP View

Daniel Dubrovsky, Strategist

Talking Points:

  • The Reserve Bank of New Zealand left the official cash rate unchanged at 1.75 percent as expected
  • The New Zealand Dollar depreciated against its major counterparts after the policy announcement
  • RBNZ changed their growth outlook downward relatively and the CPI forecast remains unchanged

Just started trading NZD/USD? See our beginner guides to help build your strategy!

The New Zealand Dollar depreciated against its major counterparts after September’s Reserve Bank of New Zealand monetary policy announcement crossed the wires. Unsurprisingly, the central bank left the official cash rate unchanged at 1.75 percent as expected which means the markets likely found something in their rhetoric that cooled hawkish bets.

A lot from the last statement was left unchanged with a few adjustments made here and there. Most notably, the growth outlook was revised from “expecting to improve going forward” to maintaining at its current pace. While not a negative outlook per se, it is a relatively downward adjustment. This followed the June quarter GDP release which saw growth in-line with expectations and not improving as the central bank estimated.

In addition, the CPI outlook was left untouched with headline inflation likely expected to decline in the coming quarters. Acting Governor Grant Spencer said that this reflects the volatility in tradeables inflation. The central bank reiterated that monetary policy will remain accommodative for a considerable period and that numerous uncertainties remain. RBNZ noted that policy may need to adjust accordingly.

With that in mind, weak CPI forecasts and a downward revision to the growth outlook can be an argument made to avoid raising rates sooner as opposed to later. This is relevant because the markets think that the central bank will hike at least once over the next 12 months. The RBNZ seems to have poured some cold water on those eager speculators.

New Zealand Dollar Falls as RBNZ Holds Rates and Changes GDP View

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

DISCLOSURES