USDNZD, Daily

The Reserve Bank of New Zealand (RBNZ) is widely expected to keep the OCR (Official Cash Rate) at the current record low 1.50%, when they announce their decision at 02:00 GMT on Wednesday. The OCR is the means by which the RBNZ manages monetary policy for the New Zealand economy, by lending overnight cash at 25 basis points above the OCR, and receiving deposits and paying interest at 25 basis points below the OCR.

The cut at their last meeting (May 8) was also widely anticipated, following the increase in “easing bias” from Governor Orr and other members of the RBNZ board that had been gaining momentum for a number of months. New Zealand is an export-driven economy with commodities (particularly soft commodities) accounting for 40% of all exports, with key neighbours Australia and China being vital markets. This puts increased emphasis on a competitive exchange rate.

Following a prolonged move down, the NZDUSD bounced from a double bottom low at 0.6490 after last week’s announcement from the FOMC. The move has stalled, ahead of the RBNZ, at the 38.2 Fibonacci level and key round number at 0.6550. A breach of the June high at 0.6680 could see further moves to the 50.0 Fibonacci and 200-day Moving Average resistance zone at 0.6700-20. Support sits at the 50-day moving average and psychological 0.6600 and 0.6500.

NZDUSD

Disclaimer: 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 purchase or sale of any financial instrument.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD consolidating its losses amid Brexit and trade uncertainty

EUR/USD is off the weekly highs but holds onto 1.11 amid uncertainty about the Brexit process and doubts that the US and China can reach a deal. Tension toward the ECB meeting mounts.

EUR/USD News

GBP/USD attempting to recover after parliament slowed down the Brexit process

GBP/USD is moving up toward 1.29, trying to recover after parliament rejected the fast-track process that PM Johnson wanted for approving his Brexit deal. An extension to Article 50 and elections are on the cards.

GBP/USD News

USD/JPY struggles below mid-108.00s, over one-week lows

The Greenback held weaker against its Japanese counterpart, with the USD/JPY pair struggling below mid-108.00s, or over one-week lows set earlier this Wednesday.

USD/JPY News

Cryptocurrencies price prediction: Bitcoin Cash, Ethereum & IOTA

The crypto market is bleeding across the board. Major cryptos like Bitcoin and Ethereum fall overnight while Bitcoin Cash engaged the reverse gear during Wednesday’s European session.

Read more

Gold: Clings to gain near the top end of 2-week old trading range

Gold gained some follow-through traction for the second consecutive session on Wednesday and is currently placed at the top end of a near two-week-old trading range.

Gold News

Forex Majors

Cryptocurrencies

Signatures