The 4/23 and 4/24 sessions had two key movers for the AUD/NZD. The first was the AUS inflation data for Q1, which was not low enough to be of concern (CPI growth was 2.9% on the year and 0.6% in Q1). However, trader’s used it to cool off the hot AUD, which translated into a break below a rising trendline in the AUD/NZD, as you can see in the 4H chart. The RBNZ raised the key interest rate as expected from 2.75% to 3.0%, and was hawkish on the prospect of continuing inflationary pressure…

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The Reserve Bank of New Zealand (RBNZ) was expected to raise the Official Cash Rate (OCR) from 2.75% to 3.00%. This is the 2nd rate hike from the 2.50% OCR that persisted since March, 2011. The RBNZ statement noted inflationary pressure several times, so it might pay to pay extra attention to inflation data now that the bank has put in 2 rate hikes in a row. RBNZ governor Graem Wheeler noted:
“Headline inflation is moderate, but inflationary pressures are increasing and are expected to continue…

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New Zealand inflation unexpectedly slowed and dairy prices extended a decline, sending the nation’s currency lower as traders pared bets on the scale of future interest-rate increases. The annual inflation rate fell to 1.5 percent in the first quarter from 1.6 percent in the final three months of 2013, Statistics New Zealand said in Wellington […]

The post NZ Inflation Lower Than Expected, NZD/USD back below 0.86 appeared first on MarketPulse.

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After 2 major events within the past 12 hours, we’re back to square one where the Kiwi is currently trading around 0.825, similar to when yesterday’s analysis was made. Prices continue to trade mostly between 0.822 and 0.827, with overall bearish bias from 22nd October remaining in play. However that does not mean that we […]

The post NZD/USD – S/T Sideways Trend Intact Despite Hawkish RBNZ and FOMC appeared first on MarketPulse.

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Kiwi dollar has been trading lower lately ever since the recent high reached on 22nd October. The decline can be attributed to the increase in USD strength since following the partial resolution of the Debt Ceiling and US Governmental Shutdown. However, it should also be noted that amongst all the major currencies, NZD is the […]

The post NZD/USD Technicals – Slight Support Seen Ahead of FOMC, RBNZ Decisions appeared first on MarketPulse.

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New Zealand central bank Governor Graeme Wheeler said he sees no opportunity at the moment to intervene in the currency market to counter a “very strong” exchange rate. “If we see opportunities to make a difference and create uncertainty about the future direction of the exchange rate in traders’ minds, then we would be prepared […]

The post RBNZ’s Wheeler Concerned about Pressure on Exchange Rate appeared first on MarketPulse.

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Kiwi dollar rallied strongly following the Reserve Bank of New Zealand (RBNZ) latest rate decision earlier. Prices pushed up not because RBNZ raised rate, but because Governor Graeme Wheeler said that the policy rate is likely to be increased in 2014. This is the most direct hawkish/tightening signal that we’ve seen from a G20 Central Bank, giving NZD long-term positive bias against all majors bar USD (due to Fed tapering). On the issue of exchange rate,  Wheeler wants to see…

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The RBNZ met and voted to hold the official cash rate at 2.50%. It held a press conference. The bank governor Graeme Wheeler said this in the written policy statement. “OCR increases will likely be required next year. The extent and timing of the rise in policy rates will depend largely on the degree to which the momentum in the housing market and construction sector spills over into broader demand and inflation pressures. We expect to keep the OCR unchanged in 2013.”

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