FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
FxPro information and reviews
OctaFX information and reviews

RBNZ holds rates, and oil bears strike

8 February 2018

The Reserve Bank of New Zealand has kept interest rates flat at 1.75% just hours ago. While there had been the odd rumour of a hike, in reality it was business as usual as the bank kept things on pause while it watched market conditions and the NZD. The current belief from the bank is that the NZD movements thus far have been in part to the USD, which is fairly true given the large falls we've seen from the USD as of late. Additionally, it believes in the long term the NZDUSD will continue to fall further over time in the current market environment. One thing that was of interest was the comments on government policy, with it saying that it believed that the current government policies would not have a negative impact on the economy.

For me the NZDUSD is of course the key interest to come out of all of this as it dipped slightly after the announcement. This is not really surprising given the forecast for inflation to not pick up again until 2020, showing that the RBNZ believes it could take some time for the economy to fire up. Looking at the NZDUSD from a bearish perspective the 200 day moving average is looking like dynamic support potentially, but has not been respected heavily in the past. Support levels can be found at 0.7171 and 0.7054 on the chart. For the bulls, it could be a hard ask as the trend has started to sink again to the bearish side, but if we did see a climb higher then I would be watching resistance levels at 0.7255, 0.7324 and of course 0.7431 if we saw a very strong rally. All in all the NZDUSD is likely to keep on trending, but it's a case of the market finding some feet again when it comes to this pair.

The other big mover in the markets today was of course oil, which saw a build up in reserves in the US for distillate inventories and of course gasoline Inventories - both posting surpluses 3M barrels above what was expected. There is a worry in the US that the current deficits may peter out in the long run causing an equilibrium to form and to stop the current bullish progression of oil markets. However, OPEC's plans continue to bear fruit, so it could give them an incentive to try and pressure oil markets further if it falters.

Oil bears have so far bounced of support at 61.00, but there is certainly pressure in the market for further falls and support levels at 58.94 and potentially even 56.49 could be tested. If the market pulls back it could see a rise to resistance levels at 63.25 and of course 65.94. One other thing worth noticing is the trend line which was broken but obeyed heavily on the bullish upswing, so something to keep in mind for oil traders in the market at present.



Scope for dips towards the 0.6793-0.6776 confluence zone
Scope for dips towards the 0.6793-0.6776 confluence zone

A dovish Reserve Bank of New Zealand (RBNZ) policy outcome this week, accompanied by a bloated NZD long positioning sees the kiwi breaking under a protracted...

25 Nov 2021

NZD/USD struggles for direction, flat-lined above mid-0.7100s
NZD/USD struggles for direction, flat-lined above mid-0.7100s

The NZD/USD pair seesawed between tepid gains/minor losses through the early part of the European session and was last seen trading in the neutral territory...

9 Nov 2021

Move beyond 50% Fibo. sets the stage for further gains
Move beyond 50% Fibo. sets the stage for further gains

NZD/USD gained strong traction for the fifth consecutive session on Tuesday. Sustained break through the 0.7100 confluence hurdle favours bullish traders...

19 Oct 2021

NZD: Buy the Rumor sell the fact?
NZD: Buy the Rumor sell the fact?

The RBNZ confirmed a 25-basis-point rate raise, which had been widely anticipated and already factored into the markets. The NZD, however, did not benefit from the boost...

14 Oct 2021

NZD/USD pares intraday gains, up little around 0.6915-20 area
NZD/USD pares intraday gains, up little around 0.6915-20 area

The risk-on impulse provided a modest boost to the perceived riskier kiwi on Thursday. Hawkish Fed expectations acted as a tailwind for the USD and capped gains for the pair...

7 Oct 2021

The Kiwi is falling
The Kiwi is falling

NZDUSD is being sold after the RBNZ meeting. The New Zealand Dollar is falling against the USD. The current quote for the instrument is 0.6880. During its October meeting...

6 Oct 2021

HotForex information and reviews
XM information and reviews
FXCM information and reviews
AvaTrade information and reviews
LegacyFX information and reviews
FP Markets information and reviews
FP Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.