NZD/USD flying high on USd weakness despite RBNZ outlook


  • The Federal Reserve is on a lower for longer trajectory which has sunk the greenback, lifting the bird.
  • The RBNZ is expected to decide upon a negative interest rate regime, but the bird is firm across the board.

NZD/USD is currently trading at 0.6733 and between a low of 0.6727 and a high of 0.6741 in a relatively choppy start to the end of the month.

Ahead o the weekend, the USD bears were fading rallies in the mid-lower end of the 92 handle in the DXY following the Jackson Hole aftermath which helped elevate the bird to fresh COVID-19 era highs. 

Considering that high nominal and real dollar rates were the key ingredients behind USD strength in prior years, the fact that the Federal Reserve is sent the prospects of interest rate hikes way over the horizon does not bode well for the greenback.

However, the bird has also made decent gains on most crosses and this is all despite the probable outcome that the Reserve bank of New Zealand will cut rates to negative.

NZ can ill-afford a higher exchange rate, but as we noted Friday, the Fed’s new policy target does neutralise the RBNZ’s threat of negative rates somewhat, and we might have to live with one for a bit longer,

analysts at ANZ Bank argued who noted that the price action is bullish and the suggest the next target as the January 1st high of 0.6756.  

Meanwhile, on the coronavirus updates, Auckland has officially moved to Level 2 but still has more restrictions in place than the rest of the country hence why it is referred to as Level 2.5. 

NZD/USD levels

 

Overview
Today last price 0.6732
Today Daily Change -0.0010
Today Daily Change % -0.15
Today daily open 0.6742
 
Trends
Daily SMA20 0.6594
Daily SMA50 0.6571
Daily SMA100 0.6377
Daily SMA200 0.6378
 
Levels
Previous Daily High 0.6744
Previous Daily Low 0.6623
Previous Weekly High 0.6744
Previous Weekly Low 0.6514
Previous Monthly High 0.6716
Previous Monthly Low 0.644
Daily Fibonacci 38.2% 0.6698
Daily Fibonacci 61.8% 0.6669
Daily Pivot Point S1 0.6662
Daily Pivot Point S2 0.6582
Daily Pivot Point S3 0.6541
Daily Pivot Point R1 0.6784
Daily Pivot Point R2 0.6825
Daily Pivot Point R3 0.6905

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!
   

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD failed to recover above 1.2100

The shared currency remains under selling pressure against its American rival, trading in the 1.2080 area. Market players waiting for more hints in the form of April Retail Sales.

EUR/USD News

GBP/USD under pressure below 1.4050 amid renewed USD demand

GBP/USD trades pressured below 1.4050, as the US dollar remains broadly bid amid risk-off sentiment. Rising inflationary pressures and Brexit jitters over NI keep investors on the edge. Bailey's speech, US data in focus.

GBP/USD News

XAU/USD respects the 10-day EMA

Gold could be on the verge of a lower low, but the hourly time frame is key. The hourly support structure is guarding a break to test bullish commitments at 1,800. The 10-day EMA and confluence of the 50% mean reversion are also offering support. Gold Weekly Forecast: XAU/USD could target 200-day SMA

Gold News

Yearn Finance Price Forecast: YFI eyes consolidation after quick surge

Yearn Finance price tagged the channel’s upper trend line yesterday, falling just short of $100,000 and 261.8% Fibonacci extension target at $102,900. The sharp reversal from the trend line marks a significant turning point for YFI that will shift price action to consolidation from the uptrend beginning at the April 25 low. 

Read more

US markets lead the recovery as jobless claims decline

Ongoing inflation fears remain, yet improved jobless claims help lift spirits in the US. Meanwhile, UK reopening stocks have been dealt a blow after SAGE claimed that a rise in the Indian Covid strain could slow the pace of lockdown easing. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures