The New Zealand dollar is in positive territory in the Tuesday session. NZD/USD is currently trading at 0.7186, up 0.32%. The kiwi has surged 4.17% in October as the US dollar has been struggling.

NZ business confidence looms

New Zealand has experienced relatively few Covid cases, but this has come at a steep price, as Auckland, the country’s largest city, has been under a strict lockdown for over two months. This has dampened economic activity and hurt business confidence. Since February, the ANZ Business Confidence index has been in positive territory only once. The October reading will be released on Wednesday and the negative trend is likely to continue.

The RBNZ raised interest rates earlier this month, in what is expected to be a series of rate hikes stretching into 2022. The central bank raised rates from 0.25% to 0.50% and would prefer to continue in increments of 25 basis points. However, with inflation running at high levels and no indications of a drop anytime soon, the bank may have to reconsider its stance and next raise by 50 basis points in order to curb inflation before it poses a threat to the recovery. The RBNZ holds its next policy meeting on November 24th, and the markets have priced in another hike, with a key question being the size of the hike.

In the US, the Fed has done its utmost to communicate clearly with the markets ahead of a taper. On Friday, Powell stated, “I do think it’s time to taper; I don’t think it’s time to raise rates”. Powell receives full marks for the Fed’s transparency with the markets, and so far there are no indications of a taper tantrum on the parts of the markets, with the Fed widely expected to taper at next week’s policy meeting.

NZD/USD technical

  • NZD/USD is testing resistance at 0.7170. Above, there is resistance at 0.7230 and 0.7309.

  • There are support lines at 0.7061 and 0.6971.

NZDUSD

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD drops towards 1.1300 as Omicron, inflation concerns weigh

EUR/USD is trading below 1.1350, consolidating the biggest daily jump in a fortnight. The US dollar rebound amid a cautious mood. Omicron, US-China woes keep investors on the edge, Rising US inflation expectations underpin the yields. US jobless claims, Omicron updates closely eyed.

EUR/USD News

GBP/USD trades with modest gains above 1.3200 mark, lacks follow-through

GBP/USD is trading flat above 1.3200, struggling to capitalize on the overnight goodish rebound from a one-year low. Fresh COVID-19 jitters pushed back BoE rate hike expectations and undermined the pound. Resurgent USD demand further stalled aggressive bullish bets.

GBP/USD News

Gold: Doji below 200-DMA teases bears, Omicron updates eyed

Gold portrays trader’s indecision below the key moving average following Wednesday’s bearish candlestick. Market sentiment dwindles as virus-linked news battles geopolitical fears. Friday’s US CPI becomes crucial as inflation expectations improve.

Gold News

Why MATIC price could soon see a meteoric rise toward the round level of $4

MATIC price appears to be ready for a major upswing toward $3.84. The governing technical pattern suggests that the layer-2 token is preparing for a 62% climb.

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Majors

Cryptocurrencies

Signatures