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
Wall Street
Bearish
Gold
Mixed
GBP/USD
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
USD/JPY
Bullish
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
  • $GBPUSD corrects from stretched valuations, however, positioning clear is likely to entice dip-buyers. Get your market update from @JMcQueenFX here: https://t.co/sfFdBx9pN6 https://t.co/j6nnry65SW
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/oQrOpYINOj
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/LSVPlus0vv
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/rPd6B5KzuI
  • Time-cycle analysis suggests that the Japanese Yen could slide significantly lower against its major counterparts. Key levels for AUD/JPY, EUR/JPY and GBP/JPY. Get your market update from @DanielGMoss here:https://t.co/WPq4Z9zzEw https://t.co/VzVLrBbL9q
  • The Australian Dollar looks poised to outperform the haven-associated US Dollar and Japanese Yen. However, it may lose ground to the New Zealand Dollar. Key levels for AUD/USD, AUD/JPY and AUD/NZD. Get your market update from @DanielGMoss here:https://t.co/cuxRxl5WaF https://t.co/pujrmqSxV7
  • Has anyone explained the risk of inflation on the markets in terms of tendies?
  • The US Dollar is trying to break higher versus ASEAN currencies. The Singapore Dollar, Philippine Peso, Thai Baht and Indonesian Rupiah are under pressure. Will follow-through last? Get your market update from @ddubrovskyFX here:https://t.co/JOWG9q01q0 https://t.co/j2ICxgrLa3
  • The commodity-sensitive Canadian Dollar may continue outperforming its major counterparts in the coming weeks. USD/CAD, CAD/CHF, CAD/JPY and EUR/CAD key levels to watch. Get your $USDCAD market update from @DanielGMoss here:https://t.co/9bkVXQuP5C https://t.co/cLNEG36mZ8
  • We just closed out the heaviest week of volume for the $SPY (US equities) since June and $TLT (Treasuries) since March 16
NZDUSD Jumps as GDP Data Surprises to Upside - Trade War in Focus

NZDUSD Jumps as GDP Data Surprises to Upside - Trade War in Focus

Dimitri Zabelin, Analyst

NZDUSD FORECAST, NEW ZEALAND GDP, RBNZ, TRADE WARS – TALKING POINTS

  • NZDUSD jumps as local GDP data comes in better than expected
  • Overnight index swaps are pricing in more cuts from the RBNZ
  • NZDUSD, export-driven economies nervously eyeing Trump - Xi talks

See our free guide to learn how to use economic news in your trading strategy!

The New Zealand Dollar spiked alongside local government bond yields as GDP data in came better-than-expected. Year-on-year growth registered at 2.5 percent, beating the 2.3 percent forecast and falling in line with the prior period’s result. This is somewhat surprising considering that data out of the island has been underperforming relative to economists’ expectations recently.

NZDUSD Jumps as GDP Surprises to the Upside

Chart Showing NZDUSD

NZDUSD initially spiked higher following the FOMC rate decision and accompanying commentary by Fed Chairman Jerome Powell, but the move fizzled shortly thereafter, with the pair retreating to resume its dominant downtrend. Across markets, the US Dollar remained broadly unchanged, suggesting that demand for the Greenback remains strong despite a shift in the Fed’s disposition. Policymakers appear to have pivoted from confident to more cautious brand of neutrality.

In May, the Reserve Bank of New Zealand cut its benchmark interest rate for the first time since November 2016, from 1.75 to 1.50 percent. The Kiwi – along with 2-year government bond yields – flew south and were provided a tailwind of dovish commentary from RBNZ officials. The rate cut was seen as a necessary policy measure to support employment growth and stoke the fires of inflation which have been otherwise rather tepid relative to the central bank’s standards.

Looking ahead, risks to global growth will likely continue to weigh on the cycle-sensitive New Zealand Dollar. US President Donald Trump and Chinese Secretary General Xi Jinping will be having an “extended meeting next week at the G-20 in Japan”. If a truce is reached, it could buoy risk sentiment and NZD, though it may not be enough to reverse the broader trend. That owes to broadly slower global growth and brewing risks in the financial system.

NZDUSD TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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

DISCLOSURES