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
Mixed
Oil - US Crude
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
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
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
  • 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/aG5lue4jZ4
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:https://t.co/eILWbFgHRE https://t.co/K4BUUCDVdB
  • 💶 GDP Growth Rate QoQ 2nd Est (Q2) Actual: -12.1% Expected: -12.1% Previous: -3.6% https://www.dailyfx.com/economic-calendar#2020-08-14
  • 💶 GDP Growth Rate YoY 2nd Est (Q2) Actual: -15% Expected: -15% Previous: -3.1% https://www.dailyfx.com/economic-calendar#2020-08-14
  • 💶 Balance of Trade (JUN) Actual: €21.2B Expected: €12.6B Previous: €9.4B https://www.dailyfx.com/economic-calendar#2020-08-14
  • 💶 GDP Growth Rate QoQ 2nd Est (Q2) Actual: -12.1 Expected: -12.1% Previous: -3.6% https://www.dailyfx.com/economic-calendar#2020-08-14
  • 🇭🇰 GDP Growth Rate QoQ Final (Q2) Actual: -0.1% Expected: -0.1% Previous: -5.3% https://www.dailyfx.com/economic-calendar#2020-08-14
  • 🇭🇰 GDP Growth Rate YoY Final (Q2) Actual: -9% Expected: -9% Previous: -9.1% https://www.dailyfx.com/economic-calendar#2020-08-14
  • 💶 GDP Growth Rate YoY 2nd Est (Q2) Actual: -9% Expected: -15% Previous: -3.1% https://www.dailyfx.com/economic-calendar#2020-08-14
  • Heads Up:🇭🇰 GDP Growth Rate QoQ Final (Q2) due at 09:00 GMT (15min) Actual: -0.1% Expected: -0.1% Previous: -5.3% https://www.dailyfx.com/economic-calendar#2020-08-14
Why Did the Kiwi Rally after the RBNZ Cut and When is it Clear to Trade?

Why Did the Kiwi Rally after the RBNZ Cut and When is it Clear to Trade?

2015-07-23 01:00:00
John Kicklighter, Chief Strategist
Share:

Talking Points:

• The New Zealand Dollar rallied after the RBNZ announced a 25 bp rate cut to 3.00 percent

• While it may seem a fundamental contradiction, the Kiwi bounce reflects how aggressive expectations were

• Though the dovish tone was less extreme, it was still dovish; what additional cues to establish when/if to enter

What kind of Trading best suits you? Technical or Fundamental? Short-term or Long-term? Take our Trader Survey and find out.

Those that were not preparing for the RBNZ rate decision ahead of time were left scratching their heads when the New Zealand Dollar rallied after the bank cut rates. Typically, when a policy group eases (cuts rates, adds stimulus) the reaction from the currency is bearish. However, anticipation can move the goal posts on what is 'worse' or 'better' than expected. That was the case with the RBNZ's decision to cut the benchmark rate a second time to 3.00 percent. While it was certainly a dovish move, it wasn't particularly bearish because the market had discounted such an outcome by driving the Kiwi down ahead of the event. To 'meet' the market's forecast, we would needed a cut and clear support for further aggressive easing moving forward. So, with this awkward outcome - dovish but not dovish enough - how do we establish how and when to place a trade? Choosing the correct pair, looking for commitment and following clear technical levels is critical. We discuss this and more in today's Strategy Video.

Sign up for John’s email distribution list, here.

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

DISCLOSURES

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.