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10 Sep 2015
NZD/USD bears stamp on the bird post RBNZ cut and statements
FXStreet (Guatemala) - NZD/USD had dropped an immediate 70 pips on the back of the RBNZ interest rate decisions and statement.
The RBNZ cut by 25 basis without much of a reaction on the release until the statement revealed that further easing seems likely depending on data and that a further fall in Kiwi is appropriate. These were the triggers for the downside moments after the release of a the 70 spike lower.
Wheeler now speaks at the press conference and volatility could be the theme on divergence or further explanations upon the statement.
NZD/USD had been better bid before the RBNZ on the back of a positive risk environment this week, supported on Asian stocks in a bull run and Australian data improving earlier in the week. Commodities have had a little better time of it as well. However, the market is also focused now on the growing concerns over the El Nino effect and droughts which will be another concern to the RBNZ that will weigh on the kiwi dollar.
Prior to the RBNZ, the positive sentiment was soon turned on its head on Wall Street today and that lead to a drift back from the highs of 0.6425 to 0.6390 in early Asia before the RBNZ. The S&P 500 finished up -1.4% and futures are down 1.27% in early Asia on the back of the sell-off on mounting fears that a Fed hike could come as early as this month. Strong jobs openings reported in the JOLTS data accompanying the positive revisions in the Nonfarm Payrolls. The JOLTS printed 5.753m vs 5.288m expected and 5.322m previous.
NZD/USD bulls denied space on 0.64 handle
Technically, space on the 0.6400 was proving to be a tough area of resistance. To the downside now, 0.6320 is support ahead of 0.6220 through the 50 SMA at 0.6282. The downside towards 0.5910 is then exposed. A continuation in the recovery brings some congestion at the upper end ahead of the 0.6500 handle and 27th Aug high at 0.6505.
The RBNZ cut by 25 basis without much of a reaction on the release until the statement revealed that further easing seems likely depending on data and that a further fall in Kiwi is appropriate. These were the triggers for the downside moments after the release of a the 70 spike lower.
Wheeler now speaks at the press conference and volatility could be the theme on divergence or further explanations upon the statement.
NZD/USD had been better bid before the RBNZ on the back of a positive risk environment this week, supported on Asian stocks in a bull run and Australian data improving earlier in the week. Commodities have had a little better time of it as well. However, the market is also focused now on the growing concerns over the El Nino effect and droughts which will be another concern to the RBNZ that will weigh on the kiwi dollar.
Prior to the RBNZ, the positive sentiment was soon turned on its head on Wall Street today and that lead to a drift back from the highs of 0.6425 to 0.6390 in early Asia before the RBNZ. The S&P 500 finished up -1.4% and futures are down 1.27% in early Asia on the back of the sell-off on mounting fears that a Fed hike could come as early as this month. Strong jobs openings reported in the JOLTS data accompanying the positive revisions in the Nonfarm Payrolls. The JOLTS printed 5.753m vs 5.288m expected and 5.322m previous.
NZD/USD bulls denied space on 0.64 handle
Technically, space on the 0.6400 was proving to be a tough area of resistance. To the downside now, 0.6320 is support ahead of 0.6220 through the 50 SMA at 0.6282. The downside towards 0.5910 is then exposed. A continuation in the recovery brings some congestion at the upper end ahead of the 0.6500 handle and 27th Aug high at 0.6505.