NZD/USD jumps over 50 pips to print 29-month high on hints of RBNZ's remit change


  • NZD/USD rises to fresh highs since June 2018.
  • New Zealand Finance Minister Grant Robertson hints at adding house prices to the mandate.
  • Risk-on mood also favors the kiwi bulls amid a light calendar.

NZD/USD bulls cheer the signals to alter the Reserve Bank of New Zealand’s (RBNZ) monetary policy by surging to the fresh multi-month high of 0.6984, currently around 0.6966, during early Tuesday. In addition to the anticipated brakes on negative rates, upbeat trading sentiment also favor the pair’s upside moves.

News suggesting New Zealand (NZ) Finance Minister Grant Robertson’s search for advice on whether to include stability in house prices as a factor in the RBNZ remit while formulating the monetary policy recently pleased NZD/USD buyers. With the recovery in the NZ housing market considered as a strong fundamental support for the RBNZ, the odds of the negative rates get an additional hurdle, which in turn backs the north-run.

Read: Breaking: NZ Government mulls adding house prices as a factor in RBNZ's remit, NZD/USD nears 0.70

Also on the positive side are the latest comments from US President Donald Trump, laying the ground for the formal transition of powers to President-elect Joe Biden. Further, chatters that ex-Fed Chair Janet Yellen will be the next Treasury Secretary and the coronavirus (COVID-19) vaccine hopes are extra back-ups for the risk-on mood.

That said, stocks in Asia-Pacific cheer the market optimism while S&P 500 Futures and the US 10-year Treasury yields portray upbeat performance by press time.

Given the lack of major data/events, risk headlines will have to direct the near-term NZD/USD moves ahead of Thursday’s speech from RBNZ Governor Adrian Orr.

Technical analysis

Only if the pair drops back below the late-2018 top surrounding 0.6975, the countertrend trades can look towards 10-day SMA near 0.6900, else the 0.7000 and the June 2018 peak near 0.7045 may lure the NZD/USD buyers.

Additional important levels

Overview
Today last price 0.6967
Today Daily Change 45 pips
Today Daily Change % 0.65%
Today daily open 0.6922
 
Trends
Daily SMA20 0.6794
Daily SMA50 0.6698
Daily SMA100 0.666
Daily SMA200 0.642
 
Levels
Previous Daily High 0.6969
Previous Daily Low 0.6897
Previous Weekly High 0.6952
Previous Weekly Low 0.6841
Previous Monthly High 0.6726
Previous Monthly Low 0.6546
Daily Fibonacci 38.2% 0.6941
Daily Fibonacci 61.8% 0.6924
Daily Pivot Point S1 0.6889
Daily Pivot Point S2 0.6857
Daily Pivot Point S3 0.6817
Daily Pivot Point R1 0.6962
Daily Pivot Point R2 0.7001
Daily Pivot Point R3 0.7034

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 

EUR/USD News

GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 

GBP/USD News

Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures