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
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
Wall Street
Bearish
Gold
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/KG9k8BnyD6
  • Gold Price Forecast: Long-Term Yields May Keep XAU/USD on the Backfoot - https://t.co/YV1gkiTPrq #GOLD $GLD $XAUUSD https://t.co/oT1lIcChN6
  • 🇳🇱 Inflation Rate YoY (FEB) Actual: 1.8% Previous: 1.6% https://www.dailyfx.com/economic-calendar#2021-03-04
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.03%, while traders in Germany 30 are at opposite extremes with 69.08%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/rHzkW4zqv7
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/kIGn36WXO2
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.28% 🇳🇿NZD: 0.09% 🇨🇭CHF: 0.07% 🇨🇦CAD: 0.02% 🇯🇵JPY: -0.03% 🇪🇺EUR: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/d2JGjMhNQn
  • Heads Up:🇳🇱 Inflation Rate YoY (FEB) due at 05:30 GMT (15min) Previous: 1.6% https://www.dailyfx.com/economic-calendar#2021-03-04
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.33% US 500: -0.54% FTSE 100: -0.54% France 40: -0.67% Germany 30: -0.81% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/WVmqPR5R29
  • Risk trends are on the lam again with Nasdaq 100 threatening to usher the reversal, but I remain skeptical that fire will catch. Meanwhile, global 10yr yields are rising again, pulling gold down. Watch I'm watching: https://www.dailyfx.com/forex/video/daily_news_report/2021/03/04/Nasdaq-Breakdown-Raises-Risk-Trend-Questions-Yields-Push-Dollar-and-Gold.html https://t.co/2RFnWOaXa4
  • 🇯🇵 Consumer Confidence (FEB) Actual: 33.8 Previous: 29.6 https://www.dailyfx.com/economic-calendar#2021-03-04
NZDUSD Tumbles Through Support as RBNZ Hints Rate Cut as Next Move

NZDUSD Tumbles Through Support as RBNZ Hints Rate Cut as Next Move

Daniel Dubrovsky, Strategist

NZD/USD Tumbles on More Dovish RBNZ

  • New Zealand Dollar tumbles as RBNZ hints rate cut bias
  • This echoes similar cautious commentary from Fed, ECB
  • NZD/USD may have more room to fall on technical signs

Trade all the major global economic data live as it populates in the economic calendar and follow the live coverage for key events listed in the DailyFX Webinars. We’d love to have you along.

The New Zealand Dollar declined as much as 1.45%, setting itself up for the worst performance in a single day since February 6th on amore dovish RBNZ rate decision – even though the shift in sentiment was expected. Holding rates unchanged at 1.75% was the widely-anticipated outcome, but the surprising portion was that the central bank’s shift to an outlook that favors a rate cut over a hike.

The Reserve Bank of New Zealand expressed that the risks to the outlook have shifted to the downside, following similar downgrades from its largest central bank counterparts. Most recent was last week’s dovish Fed, which essentially took hikes (2) off the table for this year. The concerns from the RBNZ were straight forward: weaker global growth, reduced domestic momentum and low business sentiment.

The RBNZ’s cautious transition was not taken terribly well in equities. The Nikkei 225 aimed lower on the announcement, down about 0.75% at the time of this writing. Meanwhile, the anti-risk Japanese Yen, and to a certain extent the US Dollar, both rallied. Simultaneously, the pro-risk Australian Dollar edged cautiously lower.

Ahead, the pro-risk currency will be closely eyeing market optimism which could be dictated by key US economic news flow. The remainder of the week offers US GDP and Core PCE data which threatens to fall short of economists’ expectations. This has been the tendency as of late, with disappointing consumer confidence over the past 24 hours being the most recent example. Technical signs hint of a turn lower in the S&P 500 as well.

NZD/USD 15-Minute Chart Reaction to RBNZ

NZDUSD Tumbles Through Support as RBNZ Hints Rate Cut as Next Move

Chart Created in TradingView

NZD/USD Technical Analysis

NZD/USD cleared a near-term rising support line from the beginning of this month after failing to clear a range of resistance beyond 0.6918. Looking at the daily chart below, you can see a triple top formation. If the pair manages to fall under the rising trend line from October, there may be more room for losses ahead. You can follow me on Twitter for the latest updates on NZD here at @ddubrovskyFX.

NZD/USD Daily Chart

NZDUSD Tumbles Through Support as RBNZ Hints Rate Cut as Next Move

Chart Created in TradingView

New Zealand Dollar Trading Resources

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES