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 kiwi. Show all posts
Showing posts with label kiwi. 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.
Subscribe to:
Posts (Atom)