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
Wall Street
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
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/eaA8ZI6DVu
  • Chinese property development company Sinic Holdings (2103) - Down 87%...@DailyFXTeam #contagion #Evergrande https://t.co/h5mfwqGASZ
  • 🇪🇸 Balance of Trade (JUL) Actual: €-1.60B Previous: €-0.98B https://www.dailyfx.com/economic-calendar#2021-09-20
  • Heads Up:🇪🇸 Balance of Trade (JUL) due at 08:00 GMT (15min) Previous: €-0.98B https://www.dailyfx.com/economic-calendar#2021-09-20
  • Fitch on China Property Developers - View will turn negative if sales in H2 21 fall below that achieved in H2 19 and/or if sharp fall follows through to H1 22 - Government policies in sector remain tight and show no sign of imminent loosening
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0uF2Ct https://t.co/B0Y3XJhkRS
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/1xhewkdV21
  • (USD Weekly Tech) US Dollar Dominant Uptrend Back In Focus: EUR/USD, USD/JPY, NZD/USD, USD/CHF https://www.dailyfx.com/forex/technical/article/special_report/2021/09/20/US-Dollar-Dominant-Uptrend-Back-In-Focus-EURUSD-USDJPY-NZDUSD-USDCHF.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/IpwzBGCi7P
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/qv8keXFzHZ
  • Join @IlyaSpivak at 22:00 EST/2:00 GMT for his cross-market weekly outlook webinar. Register here: https://t.co/MKGHc9ae64 https://t.co/JMlT0Wn3DK
New Zealand Dollar Forecast: NZD/USD Shoots Higher on Hawkish RBNZ, LSAP Termination

New Zealand Dollar Forecast: NZD/USD Shoots Higher on Hawkish RBNZ, LSAP Termination

Thomas Westwater, Analyst

Reserve Bank of New Zealand, NZD/USD, Monetary Policy, LSAP – Talking Points

  • RBNZ holds Overnight Cash Rate steady at 0.25%, as expected
  • Large Scale Asset Purchases (LSAP) to be halted this month
  • NZD/USD climbs over technical barriers as price climbs over 1%

The Reserve Bank of New Zealand (RBNZ) held its Overnight Cash Rate (OCR) steady at 0.25 percent, as widely expected. However, the central bank moved to halt its Large Scale Asset Purchases (LSAP) by July 23. The end of its quantitative easing program marks a major turning point in reducing stimulus to the economy.

The New Zealand Dollar saw broad strength following the Monetary Policy Statement (MPS) crossing the wires, as traders quickly priced in the hawkish policy move. Upbeat economic conditions above RBNZ estimated targets were a primary reason noted for the pullback in support. Still, RBNZ members remain wary of the volatile situation regarding the ongoing pandemic and agree that a level of ongoing stimulus is necessary to meet its objectives.

House prices were addressed, with the MPS seeing the rate of growth as of late being “unsustainable,” although some upward pressures have declined. Prices elsewhere are seen picking up pace for the June and September quarters but are viewed as being temporary due to pandemic-induced factors such as constrained supply.

New Zealand Dollar Technical Forecast

NZD/USD jumped a full percentage point higher, climbing over its 20-day Simple Moving Average (SMA) and a trendline from the May swing high. Both the MACD and RSI oscillators are pointing higher, reflecting the sharp upside move. To the downside, the recently breached trendline may offer to support prices. Alternatively, the June high at 0.7095 may serve as a target for bulls.

New Zealand Dollar Daily Chart

new zealand dollar chart, rbnz, lsap

Chart created with TradingView

New Zealand Dollar TRADING RESOURCES

--- Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the comments section below or @FxWestwateron Twitter

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

DISCLOSURES