The dynamics of the pair NZD/USD yesterday was correctly interpreted as preparation for a serious fall. Even in periods of retreat of the US dollar, the pair stayed in range, but comments from RBNZ that the currency is still overvalued, called major selling of the kiwi. As a result, there was a drop of more than a figure to the region of 0.72. It is very likely that this is not the ultimate goal of the bears, and they will decide a new attack as soon as the market is slightly offset short-term oversale.
Showing posts with label NZD/USD. Show all posts
Showing posts with label NZD/USD. Show all posts
Thursday, 9 February 2017
Kiwi's knocked down
The dynamics of the pair NZD/USD yesterday was correctly interpreted as preparation for a serious fall. Even in periods of retreat of the US dollar, the pair stayed in range, but comments from RBNZ that the currency is still overvalued, called major selling of the kiwi. As a result, there was a drop of more than a figure to the region of 0.72. It is very likely that this is not the ultimate goal of the bears, and they will decide a new attack as soon as the market is slightly offset short-term oversale.
Saturday, 13 August 2016
Unexpected growth of kiwi after interest rates cut
This week, the New Zealand dollar rose to its highest level in the past year against the decision of the Central Bank of New Zealand to cut rates by 25 bp to 2%.
On Friday there was a speech of the Reserve Bank of New Zealand Graeme Wheeler. On the meeting were reported some results of the measures and some forecastsfor GDP growth and inflation. It has been said, that a further reduction in the main refinancing rate in the area of 25-50 basis points is unlikely and will not achieve the desired effect, as the dynamics of economic growth is consistent with the forecasts. Regarding the inflation rate some anxiety remains, but with future reduction of the exchange rate, the inflation will reach the level of 2% in medium term. This statement has been welcomed by major market participants and led to purchases of NZD. It is possible, that the pair will continue to grow up to 0.7343, and in case of a break, to go to the level of 0.7400.
On Friday there was a speech of the Reserve Bank of New Zealand Graeme Wheeler. On the meeting were reported some results of the measures and some forecastsfor GDP growth and inflation. It has been said, that a further reduction in the main refinancing rate in the area of 25-50 basis points is unlikely and will not achieve the desired effect, as the dynamics of economic growth is consistent with the forecasts. Regarding the inflation rate some anxiety remains, but with future reduction of the exchange rate, the inflation will reach the level of 2% in medium term. This statement has been welcomed by major market participants and led to purchases of NZD. It is possible, that the pair will continue to grow up to 0.7343, and in case of a break, to go to the level of 0.7400.Tuesday, 12 July 2016
USD reduces losses in inactive trading
The dollar stopped falling against other major currencies in quiet trading on Tuesday, as investors continue to focus on the upcoming meetings of the central bank on a background of high expectations of additional stimulus.GBP/USD rose by 1.47% to 1.3182, rebounding from a 31-year low of 1.2794, reached last Wednesday.
Also on Tuesday, the International Monetary Fund said that Brexit likely to have a "negligible" impact on US economic growth.
USD/JPY rose by 1.66% to 104.49, the highest value since June 24, while USD/CHF rose 0.20% to 0.9848.
The yen weakened after the ruling coalition of Prime Minister Shinzo Abe won a landslide victory in elections on Sunday.
Coalition victory strengthened hopes for fresh stimulus measures.
EUR/USD rose by 0.26% to 1,1870.
Australian and New Zealand dollars rose sharply, AUD/USD rose by 1.31% to 0.7633 and NZD/USD rose 0.97% to 0.7289.
Earlier, the National Bank of Australia said that the index of confidence in the business community rose to 6 in June from 3 the previous month.
USD/CAD fell 0.63% to 1.3036, reaching the highest level since June 28.
Commodity currencies also rose, as on Tuesday, oil prices rose after the Organization of Petroleum Exporting Countries said that in 2017 global oil demand will increase, and excess reserves decrease.
USD index showing the US dollar against a basket of major currencies, was down 0.20% to 96.40, rebounding from the low of the day 96.08.
Wednesday, 1 June 2016
"Kiwi" is trying to fly!
It lives in New Zealand, such flightless kiwi bird. In honor of it on the trader slang called national currency: "kiwi» = NZD. While the majority of the commodity currencies are experiencing some pressure due to a general strengthening of the US dollar and a slight rebound of oil prices from peaks, our kiwi bird tries to fly.
Since Tuesday NZD/USD pair is trading at the support of the moving averages of 20 and 50 periods and tests the resistance around 0.6805. Index Stochastic Oscillator is in the overbought zone (above 65), but shows no signs of reversal.
While the support at 0.6735 is not broken, the pair opened up to the way towards 0.6845 and further to 0.6890-04 resistance zone. Indicators in H4 at the moment give buy signals. Recommendations for today: buy at the current quote [0.6802/06], but, preferably, not higher than 0.6810 (very aggressive) with the aim of 0.6835 near and more distant in the area of 0.6890.
Since Tuesday NZD/USD pair is trading at the support of the moving averages of 20 and 50 periods and tests the resistance around 0.6805. Index Stochastic Oscillator is in the overbought zone (above 65), but shows no signs of reversal.
While the support at 0.6735 is not broken, the pair opened up to the way towards 0.6845 and further to 0.6890-04 resistance zone. Indicators in H4 at the moment give buy signals. Recommendations for today: buy at the current quote [0.6802/06], but, preferably, not higher than 0.6810 (very aggressive) with the aim of 0.6835 near and more distant in the area of 0.6890.
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