Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Sign in to follow this  
Guest Michal Vajcik

NZD/USD: Kiwi Learns to Fly Amid RBNZ's No Change Verdict

Recommended Posts

Guest Michal Vajcik

http://bit.ly/1L2XMdl

 

The kiwi continued to trade with a massive gain against the US dollar on Thursday afternoon, jumping well above its four-year low after the the Reserve Bank of New Zealand (RBNZ) made no change to its policy rate earlier in the day.

 

The NZD/USD pair rallied 1.67% to $0.7412, advancing from bottom at $0.7192 seen yesterday night.

 

Meanwhile, sluggish US macro data had little impact on the cross, causing only a minor drip from its daily high. First, US retail sales missed expectations in February, as the latest report showed a deterioration of 0.6% month-on-month, although slightly better than the 0.8% fall posted in January.

 

Later in the day, the number of initial jobless claims hit 289,000 for the week ending March 7, sliding from an upwardly revised 325,000 seen in the previous week, while business inventories remained flat in January.

 

RBNZ decision

 

The RBNZ left its overnight cash rate at 3.5% and the 90-day bank bill track unchanged into early 2017, which signals that they foresee no rate cuts, or hikes, at least until then.

 

The decision to hold comes as inflation consistently runs below the bank's forecasts, and last quarter slipped below the RBNZ's 1-3% target band. With inflation unlikely to move much higher in the short term, the bank is unable to continue hiking interest rates as it did throughout the first half of last year.

Technical analysis

 

Together with the aussie, the kiwi was strongly sold off from the peak around $0.76 where it was trading just few days ago. The first support in sight is around $0.7190 where a major reversal occurs and as an intraday resistance now acts a level of previous support at $0.7440.

 

Long-term daily charts are on the way down and have a lot of zones below the previous swing low of $0.7150, possibly supporting the currency cross from a sharp sell-off. The most important level lies at the big round and psychological figure of $0.7000.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Topics

  • Posts

    • $OMER (OMER) Omeros stock strong open with a breakout watch above 19.9,analysis https://stockconsultant.com/?OMER
    • GBPJPY Remains Bearish With Eyes On  138.50 Zone GBPJPY remains bearish with eyes on 138.50 zone following its recent weakness. On the downside, support comes in at the 138.50 level where a violation will aim at the 138.00 level. A break below here will target the 137.50 level followed by the 137.00 level. Its daily RSI is bearish and pointing lower suggesting further weakness. Conversely, resistance is seen at the 139.50 level followed by the 140.00 level. A cut through that level will set the stage for a move further higher towards the 140.50 level. Further out, resistance resides at the 141.00 level. All in all, GBPJPY remains  with eyes on 138.50 zone as we expect more weakness.   
    • Which are the best books on trading & investment?
    • Crypto trading, or cryptocurrency trading, is simply the exchange of cryptocurrencies. Like in Forex, you can also buy and sell a cryptocurrency for another, like Bitcoin or altcoin for USD and Euro. This is one way of getting involved in the world of cryptocurrencies without having to mine it. A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
    • Date : 23rd May 2019. MACRO EVENTS & NEWS OF 23rd May 2019.FX News Today Comments from Fed’s Bullard that a rate cut could become an “attractive option” if inflation continues to disappoint added support to bond markets ahead of the release of the Fed minutes from the May meeting. Ahead of today’s Fed minutes, this helped to lift sentiment and underpin stock market sentiment, which struggled for direction amid conflicting trade headlines. Reports that the US administration is considering blacklisting up to 5 Chinese surveillance firms, including Hikvision added fresh concerns about a deepening of trade frictions and put pressure on tech stocks. The GER30 futures are heading south in tandem with US futures after a mixed session in Asia, where mainland China bourses underperformed. The FTSE 100 future is getting some support from a weaker pound, which is shedding the gains seen in the wake of May’s latest Brexit deal yesterday At the same time, China’s ambassador to the US said Beijing is ready to resume talks and ASX and Nifty 50 slightly higher. The WTI future meanwhile fell back to USD 62.58 per barrel. Charts of the DayTechnician’s Corner EURUSD spiked up briefly to 1.1188, just above its 20-day MA, though has now eased back under 1.1150. The Euro remains in sell the rally mode, given the Dollar’s yields advantage, and relatively better performing economy. EURUSD has posted 6-straight sessions of lower daily lows, a bearish signal, and has sights set on the May 3 bottom of 1.1135, then 2019 lows of 1.1110 seen in late April. XAUUSD: Renewed dollar strength, along with the return of risk-taking conditions has dented gold’s safe-haven appeal. The US easing of restrictions on Huawei has helped equity sentiment, to the detriment of gold prices. Next support comes at $1,270 in the near term, then $1,267.30, , the May 2 low, then $1,258.38, the 200-day MA. Main Macro Events Today Consumer Price Index (GBP, GMT 08:30) – Prices are expected to rise in April, with overall inflation expected to stand at 2.1%y/y, compared to 1.9% y/y last month. Retail Sales and Core (CAD, GMT 12:30) –Canadian sales are expected to have eased by 0.4% m/m in March, compared to 0.8% m/m in February. FOMC Meeting Minutes (USD, GMT 18:00) FOMC minutes, detailing the view of each of the Fed Governors and FOMC Members, shed light on their perspectives regarding the future of the US economy. FOMC left policy on hold earlier this month, and it cited solid growth, low headline and core inflation, though Powell said in his presser that the weakness was likely “transitory”. Support and Resistance levels Always trade with strict risk management. Your capital is the single most important aspect of your trading business.Please note that times displayed based on local time zone and are from time of writing this report.Click HERE to access the full HotForex Economic calendar.Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!Click HERE to READ more Market news. Andria Pichidi Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.