NZD news

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RBNZ's Wheeler: Outlook for NZ growth remains positive, but with uncertainties

"The outlook for New Zealand's economic growth remains positive, albeit with considerable uncertainty remaining, especially internationally,"
The Reserve Bank of New Zealand has just published its Statement of Intent outlines RBNZ's priorities

The trade-weighted exchange rate has fallen since early 2017, which, if sustained, will help to rebalance growth towards the tradables sector.

NZD/JPY: Looks Expensive Here; What's The Trade?

JPY is the nominal anchor for funding trades over the coming year as the BoJ commits to yield curve control targeting.

However, with NZD/JPY heading towards the years highs and looking increasingly expensive relative to rate differentials, questions on the strength of NZD may become a focal point for the RBNZ again

Strong NZ macro fundamentals suggest a policy response will be eventually be needed, but the RBNZ was somewhat cautious at its recent meetings as it continues to push back on expectations for an early rate hike.

Short NZD positioning has continued to be unwound and is close to neutral.

Technicals shows spot is approaching the 200wk SMA which could soon act as resistance as a bearish TD Setup sell signal calls for a dip

With NZD close to the year's highs, investors may prefer for a dip before adding

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NZD/USD forecast for the week of July 10

The New Zealand dollar fell during the week, as the 0.7350 level continues to offer a significant amount of resistance. If we can break above there, the market should continue to go to the 0.75 handle, but I also recognize that there is a significant threat of the market rolling over as we have been overextended for some time. The RBNZ continues to sit with a neutral stance, so that of course will put a bit of a damper on the New Zealand dollar, but if risk appetite comes back into the marketplace, it’s likely that the New Zealand dollar should continue to go much higher. Obviously, the market should continue to find reasons to go higher if we can rally in the stock markets and of course the commodity markets. If we were to break above the 0.75 level above, that should send the market to the 0.7750 level.

New Zealand Q2 CPI Stalls Unexpectedly

Inflation in New Zealand stalled unexpectedly in the second quarter, a sign that falling oil prices were hampering cost pressures throughout the economy.

The consumer price index (CPI) was zero in the second quarter, following a 1% increase in the March quarter, Statistics New Zealand reported Tuesday.

NZD/USD Reverses Higher To Erase Losses From CPI Miss

A shortfall of expectations in quarterly NZ CPI data led to a sharp push lower in NZD/USD but a broadly weaker US dollar has led to a reversal to erase early day losses and to take the pair above resistance that had held lower in the past three sessions.

Statistics New Zealand reported the consumer price index unchanged in the second quarter while analysts were expected a slight rise of 0.2% following a gain of 1.0% in the first quarter.

NZD/USD Retreats After Posting A New 2017 High

NZD/USD advanced for a second straight session and is seen attempting to break to new highs for the year. The pair briefly broke above the high set in February of 0.7375 but was unable to sustain the gain.

The pair reached a high of 0.7387 slightly ahead of the European open which marks the highest level the pair has traded since November 2016.

NZD/USD Advances To Fresh 2017 High

NZD/USD rallied for a third consecutive day and is seen scaling above resistance from the February high to print fresh highs for the year.

The push higher above the prior 2017 high came in the New York sessions as EUR/USD broke to fresh highs for the week and the trade-weighted dollar index (DXY) hit a fresh 10-month low.

NZD/USD Breaks To 10-Month High, On Pace To Post Fifth Consecutive Daily Advance

NZD/USD has gained every day this week and is seen breaking above November highs today to break to a 10-month high. The pair broke higher during the Asian session and fell into a consolidation near the day’s high shortly after the European open.

The currency pair will close a second consecutive week in the green and has gained in 9 out of the past 10 sessions to add 8.5% or roughly 580 points. This week’s close will mark the highest weekly close in 14 months.

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