- US Dollar Index erases daily gains, returns below 95.20.
- The RBNZ is expected jeep the policy rate unchanged at 1.75%.
Earlier today, the NZD/USD pair gained traction during the Asian trading hours after the RBNZ announced that it revised its 2-year inflation expectation to 2.04% from 2.01% previously. Furthermore, New Zealand's Finance Minister, Grant Robertson, stated that there was "every reason to be optimistic" regarding the economic outlook. However, the pair struggled to push higher in the second half of the day and was last seen trading at 0.6740, where it was virtually unchanged on a daily basis.
A stronger greenback in the early NA session forced the pair to erase its gains. Following Richmond Fed President Barkin's hawkish comments, the US Dollar Index advanced to a daily high at 95.42. Barkins argued that the Fed needed to continue to raise interest rates amid tight labor market conditions and steady inflation growth. Nevertheless, the index went into a consolidation phase amid a lack of fresh fundamental drivers and was last seen flat on the day at 95.18.
During the early trading hours of the Asian session on Thursday, the RBNZ is going to publish its monetary policy statement and announce the interest rate decision, which is expected to stay unchanged at 1.75%.
“Once the OCR is left at 1.75% as widely expected, all eyes on the RBNZ's projected OCR path in the Monetary Policy Statement. Some look for a delay in the 10bp increase from Q3 2019 into 2020, but we don't think such a signal is necessary, and look for no change in guidance. Orr so far is a communication wildcard, making the press conference mandatory viewing for NZD investors,” TD Securities analysts noted in a recently published report.
Technical outlook
On the upside, resistances align at 0.6755/60 (Jul. 6 high/daily high), 0.6820 (50-DMA) and 0.6860 (Jul. 9 high). Supports are located at 0.6685 (Jul. 3/Jul. 2 low), 0.6575 (Mar. 16, 2016, low) and 0.6500 (psychological level).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY flat-lines below 151.50 after soft Japanese CPI data
USD/JPY stays defensive below 151.50 after the release of a soft Japan's CPI report and mixed Industrial Production and Retail Sales data on Friday. Japanese verbal intervention also weighs on the pair amid the holiday-thinned conditions on Good Friday. US PCE inflation awaited.
AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull
AUD/USD is trading listlessly above 0.6500 in the Asian session amid light trading on Good Friday. The Aussie pair shrugs off encouraging comments from China's FX regulator, as price action remains subdued ahead of the US PCE inflation data.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. As this coiling up comes undone, investors can expect XRP to kickstart a massive rally.
Will they won’t they cut rates is the question of Q2?
There has been some significant push back from Fed and Bank of England members around the timing of rate cuts, and the Bank of Japan still haven’t physically intervened in the FX market to stem yen weakness although they are threatening to do so.