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
Oil - US Crude
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
  • New Zealand #Dollar Forecast: $NZDUSD at Technical Support- #Fed on Tap- https://t.co/pHDo3qmhTY https://t.co/fERBq6NBcD
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.13% France 40: 0.13% US 500: 0.10% FTSE 100: 0.01% Germany 30: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/YmRrQNJRUY
  • White House: - No sign yet that the Delta variant has had an economic impact in the US - Mask guidance to be determined at the local level
  • The final week of July brings forth a packed economic calendar – particularly for the US Dollar: June durable goods orders; July consumer confidence; the July FOMC meeting; and 2Q’21 US GDP. Get your market update from @CVecchioFX here:https://t.co/q7Clikv6M8 https://t.co/OzdmAFVW6X
  • There is a creep of uncertainty with the rise of the Delita variant and the slowing of the economic recovery. Our DFX analysts give you an updated analysis of the top opportunities for Q3👉https://t.co/wEineMCbzt https://t.co/G1wiOMlBRg
  • NY Fed accepts $891.20 billion in reverse repo operations $USD $DXY
  • White House: Because of the Delta COVID variant, the US will maintain global travel restrictions
  • Technical Levels: #Dollar, #Loonie, #Aussie, #Gold, #Silver, #Oil, #Bitcoin and more! (Webinar Archive) - https://t.co/lQIS4EvFkh
  • Russian mainline gas pipeline has exploded in the Perm region - BBG #OOTT #Oil $CL_F
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 94.10%, while traders in Wall Street are at opposite extremes with 75.09%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/dpAetV8XEY
New Zealand Dollar Sinks as RBNZ Surprises Markets With 50bps Cut

New Zealand Dollar Sinks as RBNZ Surprises Markets With 50bps Cut

Daniel Dubrovsky, Strategist

NZD/USD, RBNZ Talking Points

  • New Zealand Dollar tumbles as RBNZ delivers surprise 50bps cut
  • Another 25bps cut this year could lead to further NZD depreciation
  • NZD/USD is looking to take out key support, eyeing 2016 lows?

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.

NZD/USD Sinks as RBNZ Delivers 50bps Cut

The New Zealand Dollar tumbled after the RBNZ unexpectedly delivered a more-aggressive interest rate cut. In August, the Reserve Bank of New Zealand lowered its official cash rate to 1.00% from 1.50%, or in other words a 50-basis point cut. This caught markets off guard as expectations of a 25bps cut were the prominent bet.

A combination of commitment to meet labor and inflation objectives alongside uncertainty over global trade helped to contribute to today’s action. Lately, there have been rising concerns over the latter as markets anticipate whether the US and China could escalate tensions. This includes US President Donald Trump raising tariffs on about $300b against China to 25% from 10%.

For the New Zealand Dollar, attention turns to if the central bank might cut rates by an additional 25 basis points to 0.75%. Their monetary policy statement indicated that there is a chance that this might happen. Expect more Kiwi Dollar weakness if trade tensions worsen. Domestically, if economic data trends follow yesterday’s upbeat jobs report, that may bode well for the NZD.

In the near-term, the NZD/USD will be closely eyeing the upcoming press conference from RBNZ Governor Adrian Orr. Odds of a further 25bps rate cut are about 50% according to overnight index swaps. If he errs on the side of caution and underpins the focus on data-dependency, this may offset recent selling pressure in the New Zealand Dollar.

NZDUSD Technical Analysis, IG Client Sentiment

The NZD/USD, after the RBNZ, is aiming to resume the near-term downtrend from the end of July. Support, which is a range between 0.6482 and 0.6501, is on the verge of being taken out. Prices are now eyeing October 2018 lows which if taken out, exposes the next psychological barrier between 0.6348 and 0.6403.

This is accompanied by bearish-contrarian price signals that IG Client Positioning is showing on the New Zealand Dollar. If net-long positioning continues to rise, this may exacerbate declines in NZD/USD. Join me every week on Wednesday’s at 00:00 GMT as I discuss how you can use this in your own trading strategy.

NZDUSD Daily Chart

New Zealand Dollar Sinks as RBNZ Surprises Markets With 50bps Cut

New Zealand Dollar Trading Resources

--- Written by Daniel Dubrovsky, 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