al_dcdemo's Blog
NZD/USD jumps on signs of inflation
NZD/USD jumped some 50 pips in the morning after RBNZ's measure of core inflation came in at a 7-year high. That came after official inflation data for the second quarter showed a slight miss on expectations, but still solid. NZD/USD rallied off of 0.67 area twice but further upside won't come easy without RBNZ moving into hawkish direction.
NZD/USD bounces from two-year lows
NZD/USD fell to the lowest level in two years on Monday but bounced just as quickly. Market is already very short and it will likely take further escalation in trade wars and/or more dovish hints by the RBNZ to encourage new bears to enter. 0.665 is the next target on the downside while 0.68 - 0.685 area should provide resistance.
NZD/USD closes the week on a firm note
New Zealand dollar was the strongest major currency last week, refusing to follow Australian dollar lower, as it usually does. NZD/USD corrected 38.2% of the 550-pip sell-off in April and May. Where to from here depends, as always, on U.S. dollar and risk sentiment. All things being equal, the pair could be headed to retest 0.715 area in the days/weeks ahead.
No relief for NZD/USD bulls yet
NZD/USD has been one of the most beleaguered currency pairs recently. It fell to new lows in the latest round of U.S. dollar buying, which coincided with new highs in U.S. treasury yields. 0.685 (channel support, long-term trendline area) is the initial support area. A break below would target 2017 low (0.6775).
RBNZ strikes a dovish tone, NZD/USD sells off
It's a known fact the RBNZ have been in neutral mode for some time and they're expected to maintain it for a considerable period of time. However, they struck a dovish tone in the statement tonight by saying upfront that the direction of their next move is equally balanced. They also lowered inflation forecast. NZD/USD spiked about 50 pips and added another 30 so far. 2017 low near 0.6775 is the next major target.
NZD/USD likely to find some support into 0.70
New Zealand dollar has been one of the worst performing currencies in the past two weeks. From a high near 0.74 on Friday 13th it fell to as low as 0.7060 yesterday, that's 340 pips or 4.8%. 0.70 - 0.705 area will likely offer some support. In the event of a retracement, 0.71 - 0.715 is where I'd expect at least some resistance.
NZD/USD taking a shot at the upside
NZD/USD rose above March high (0.7350) this week. Technically it's still contained in a wider 0.715 - 0.745 range but with momentum on the bulls' side. If the upper extreme gives way, last year's high (0.7550) will be the next target. 50 DMA should hold as a support.
NZD/USD setting up for the next leg
Kiwi dollar has so far been the best performer this week, though it pared some if the gains yesterday and tonight. NZD/USD is still trading in a sideways consolidation between, roughly, 0.715 and 0.735. If risk sentiment holds, I don't think it will be long before the pattern resolves to the upside.
NZD/USD trading in a range
New Zealand GDP for Q4 2017 came in weaker than estimated. NZD/USD fell about 30 pips ahead of and after the release but retraced that in the following hours. The pair's been quite resilient even amidst wobbly risk sentiment of late, mostly owing to U.S. dollar weakness. 0.72 - 0.74 range in play still. A successful break could see 200 pips in either direction.
NZD/USD recovers on the back of US dollar weakness
NZD/USD has almost completely recovered since it hit 38.2% retracement of the November - January rally last week. Inflation Expectations came in firm but the U.S. dollar weakness is the main driver. If positive risk mood holds, the pair could be on the way to retest 0.75 and possibly beyond, to the highest level since 2015.