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
  • While JPY gets clobbered, CHF decides to turn a blind eye to yields $CHF https://t.co/MViWZiiPZ7
  • The surprise 100 basis point cut from the Turkish central bank (to 18%) generated the expected pressure for $USDTRY. That said, I don't think it was the market that decided the momentum should die out at 8.8000 again... https://t.co/4jmOPnzzK9
  • surprised that $NQ is holding up so well with what rates are doing. 10 year yield at a 2 month high, $Nasdaq still holding resistance at prior support https://t.co/UBWBxY2nFC
  • The S&P 500 has recovered all the ground it lost at the start of the week and the Dollar has slumped post FOMC and PMIs. DailyFX's @JohnKicklighter gives a brief overview of the market for Thursday! https://t.co/jihKB44ELn
  • https://t.co/lbNvVbQq4n
  • The future taper isn't enough to urge the Dollar to a critical bullish break. In turn, $EURUSD has reversed shy of of August's trough and keeps in play an inverse head-and-shoulders pattern with a neckline at 1.19 https://t.co/EgUtX6Pmvy
  • USD/CAD testing short-term moving average support. Traders have cut their long exposure over the week. Get your market update from @nickcawley1 here:https://t.co/iEL5cbFnHs https://t.co/6kLkUFkFvU
  • In the West, that qualifies as a default action. Let's see how it is treated in the world's second largest economy https://t.co/PKWy7SE8Dt
  • Some Evergrande offshore bondholders do not expect company to make interest payment by Thursday deadline
  • The flash September US PMIs slowed more sharply than expected. That was a general trend across the developed world with most economies continuing to slow from their post-Pandemic peak recovery paces https://t.co/TgkUDlOyAe
NZD/USD Jumps on Hawkish RBNZ, EUR/NZD Slammed into Key Support

NZD/USD Jumps on Hawkish RBNZ, EUR/NZD Slammed into Key Support

Justin McQueen, Strategist
  • NZD Jumps on Hawkish RBNZ, Covid Spread Remains a Risk
  • EUR/NZD Drops to Key Support

NZD: After seeing a sharp reversal in yesterday’s session with market participants buying the dip in NZD, the currency is once again heading higher and currently outperforming the rest of the G10 complex with RBNZ officials reiterating that rate hikes are coming. The latest hawkish commentary came from the Assistant Governor who stated that last week, the Bank had considered a 50bps rate hike adding that they decided to hold rates due to the communication challenge and not the economic risks. That being said, while money markets are 50/50 as to whether the RBNZ hikes are its October meeting, this will largely depend on the Covid backdrop, in which a situation similar to Australia may well force the RBNZ to refrain from raising rates.

NZ New Covid Cases

NZD/USD Jumps on Hawkish RBNZ, EUR/NZD Slammed into Key Support

Source: JHU CSSE Covid-19 Data

NZD/USD: Looking at the chart, near term resistance for NZD/USD resides at 0.6950-60 with the psychological 0.70 handle above, which also sits at a congested zone and thus may be difficult to breach on its first attempt. While on the technical front, the RSI will need to close above 50 to give bull an encouraging signal to push higher.

A Guide to Support and Resistance Trading

NZD/USD Chart: Daily Time Frame

NZD/USD Jumps on Hawkish RBNZ, EUR/NZD Slammed into Key Support

Source: Refinitiv

EUR/NZD: Having hit multi-month highs during the pullback in risk appetite, the renewed upside in the equity space has subsequently prompted EUR/NZD to correct lower. What’s more, with the RBNZ providing a reminder of its intention to raise rates, focus can return to policy tightening and the divergence between the ECB and RBNZ. Therefore, with the German-NZ Spreads pointing to a lower EUR/NZD, risks remain lower, provided risk sentiment remains stable. Regarding short term support, the 100 & 200DMA sits at 1.6875-77.

DE/NZ 10Y Bond Spread vs EUR/NZD

NZD/USD Jumps on Hawkish RBNZ, EUR/NZD Slammed into Key Support

Source: Refinitiv

EUR/NZD Chart: Daily Time Frame

NZD/USD Jumps on Hawkish RBNZ, EUR/NZD Slammed into Key Support

Source: Refinitv

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

DISCLOSURES