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
EUR/USD
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
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • $Gold came close, just couldn't take out that Oct high yday. Question for today - will Gold bulls defend support? TL projection + 1900 just below $GLD $XAUUSD https://t.co/aVRF811ibG https://t.co/Z0a8suyJFJ
  • US House Speaker Pelosi says will soon be ready to put pen to paper on stimulus bill
  • 🇺🇸 Initial Jobless Claims (17/OCT) Actual: 787K Expected: 860K Previous: 898K https://www.dailyfx.com/economic-calendar#2020-10-22
  • 🇺🇸 Jobless Claims 4-Week Average (17/OCT) Actual: 811.25K Previous: 866.25K https://www.dailyfx.com/economic-calendar#2020-10-22
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.61%, while traders in EUR/USD are at opposite extremes with 74.90%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/sY3dTjuO9F
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/JJg25hAgDO
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.16% 🇯🇵JPY: -0.07% 🇨🇦CAD: -0.14% 🇦🇺AUD: -0.21% 🇪🇺EUR: -0.33% 🇬🇧GBP: -0.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/BZxN8uc0fV
  • Heads Up:🇺🇸 Initial Jobless Claims (17/OCT) due at 12:30 GMT (15min) Expected: 860K Previous: 898K https://www.dailyfx.com/economic-calendar#2020-10-22
  • Heads Up:🇺🇸 Continuing Jobless Claims (10/OCT) due at 12:30 GMT (15min) Expected: 9500K Previous: 10018K https://www.dailyfx.com/economic-calendar#2020-10-22
  • Heads Up:🇺🇸 Jobless Claims 4-Week Average (17/OCT) due at 12:30 GMT (15min) Previous: 866.25K https://www.dailyfx.com/economic-calendar#2020-10-22
AUD & NZD Most Volatile Currencies Next Week Amid Knife Edge RBA & RBNZ Rate Decisions

AUD & NZD Most Volatile Currencies Next Week Amid Knife Edge RBA & RBNZ Rate Decisions

2019-05-03 16:00:00
Justin McQueen, Analyst
Share:

Currency VolatilityAUD & NZD Talking Points

  • AUDUSD Eyes Knife Edge RBA rate decision
  • NZDUSD Volatility Surges to Highest Since Feb 2018

Top 10 most volatile currency pairs and how to trade them

For a more in-depth analysis on FX, check out the Q2 FX Forecast

AUD & NZD Most Volatile Currencies Next Week Amid Knife Edge RBA & RBNZ Rate Decisions

Source: DailyFX

AUDUSD | Weekly Range (0.6930-0.7100)

Australian Dollar 1-week implied volatility surged to the highest level since January ahead of the RBA rate decision, in which investors have shown a greater interest for Australian Dollar puts over calls (greater demand for downside protection). AUD traders will be firmly fixed on the RBA rate decision in which soft inflation (full story) has stoked expectations of an imminent rate cut with OIS markets pricing in a 40% chance of a 25bps cut at the upcoming meeting, while economists are split 50/50 as to whether the central bank will cut now or signal a cut for a later meeting.

However, despite inflation dropping to the lowest level since Q3 2016, the labour market remains strong. As a reminder, at the last meeting the RBA stated that a rate cut could be needed if unemployment rises and inflation remains weak. Given that we have yet to see the latter take effect, this may be enough to push back a rate cut. Regardless, this meeting is very much a “live” one.

1-WEEK IMPLIED MOVE: 75pips

AUD & NZD Most Volatile Currencies Next Week Amid Knife Edge RBA & RBNZ Rate Decisions

Source: Thomson Reuters, DailyFX

NZDUSD | Weekly Range (0.6550 – 0.6730)

Much like the Aussie, the New Zealand Dollar has been under pressure in recent sessions as expectations of a rate cut weighs on the currency. Weakening domestic data, most notably, inflation, has seen OIS markets price in a 60% chance of a 25bps cut at the RBNZ’s May 8th meeting. Consequently, 1-week options, which captures the event has seen implied volatility jump to its highest level in over year, whereby investors are seeking NZD put options for protection against deeper losses.

1-WEEK IMPLIED MOVE: 79pips

AUD & NZD Most Volatile Currencies Next Week Amid Knife Edge RBA & RBNZ Rate Decisions

Source: Thomson Reuters, DailyFX

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES