New Zealand Dollar nosedives

7 August, 2019

The New Zealand Dollar weakened against every single G10 currency this morning after the Reserve Bank of New Zealand (RBNZ) shocked markets by cutting interest rates by 50 basis points - bringing the official cash rate to a record low of 1%.

According to the central bank, "Global economic activity continues to weaken, easing demand for New Zealand’s goods and services" while “Heightened uncertainty and declining international trade have contributed to lower trading-partner growth”.

With the RBNZ purchasing premium tickets on the global monetary easing bandwagon and signalling further cuts, the New Zealand Dollar is positioned to weaken further. This is already being reflected in the NZDUSD which tumbled a staggering 150+ pips to levels not seen since January 2016 below 0.6400.

The technical picture is extremely bearish on the daily charts with bears exerting pressure on the 0.6400 level as of writing. Sustained weakness below this level will signal further downside with the next key point of interest at 0.6350. Alternatively, if 0.6400 proves to be a reliable support, prices have the potential to rebound back towards 0.6850 before resuming the downtrend.


Source  
Q2 set to end on risk-on note30 Jun, 2020  

Asian stocks are advancing on the final trading day of June, after a positive session on Wall Street, with market sentiment buoyed further by China’s better-than-expected June PMI readings.

Beware Quadruple Witching: More volatility ahead?19 Jun, 2020  

Heightened volatility has been a staple of US equities since March, with the VIX index staying stubbornly higher compared to its long-term average of sub-20 levels...

Will the second wave of Covid-19 end the current rally?19 Jun, 2020  

It has been one hundred days since the WHO declared the coronavirus outbreak a pandemic. During this time, we experienced the worst sell-off and fastest...


To believe or not to believe in virus vaccine hopes?20 May, 2020  

The euphoria that roared across financial market sentiment throughout yesterday and encouraged huge rallies in major U.S stock markets is running thin on flames today...

Gold blasts to new highs but can this joy last?19 May, 2020  

Investors are happy to add risk into portfolios with stocks and oil prices cheering this sentiment but at the same time, gold has reached its highest level...

Will the clock unveil more COVID-19 cases as restrictions ease?12 May, 2020  

Market volatility remains muted, however the crossroads appear to be getting closer where questions will be asked if eased restrictions are contributing...


Sell in May and go away?4 May, 2020  

On Covid-19 related news, states across the US are taking steps to restart the economy by easing stay-at- home orders and allowing non-essential businesses to reopen...

Will markets follow Pied Piper Powell?29 Apr, 2020  

The Dollar is weaker against all G10 and Asian currencies ahead of today's Fed rate decision and the US Q1 GDP announcement. The Dollar index (DXY) has been...

Gold dives despite market turmoil while Dollar surges22 Apr, 2020  

Gold struggled to shine on Tuesday, falling more than 1% as chaos in the oil markets triggered panic selling across the board and forced investors...