20 Jul 2015
NZD/USD: RBNZ will take the show this week
FXStreet (Guatemala) - NZD/USD is currently trading at 0.6518 with a high of 0.6527 and a low of 0.6512.
NZD/USD closed the week in highly bearish territory. Heavy supply on the back of Fonterra’s GlobalDairyTrade price index that dropped 10.7% took the bird of its perch on 0.6720 support and the price dropped down to 0.6498 where the pair drifted sideways in to the end of the US session on Friday, closing at 0.6513. A the lowest point since 2009, technically, we have broken to the downside through key support of 0.6580 and on target for 0.6420.
NZD/USD hit on all sides
NZD/USD is being hurt from all sides, including domestic performances as well as external pressures which include lower global dairy prices and forecasts that weigh o the currency in respect of the RBNZ's outlook and potential easing bias. The focus for this week will be RBNZ’s OCR Review and markets are positioned for the probable outcome of a further cut to the OCR of 25bps to 3.0%.
Analysts at Deutsche explained, "Assuming that a 25bp rate cut is delivered, the focus therefore will be on the accompanying statement to see to what extent it opens the door to further policy easing at the subsequent meeting on 10 September and beyond, as is currently priced by the market."
NZD/USD closed the week in highly bearish territory. Heavy supply on the back of Fonterra’s GlobalDairyTrade price index that dropped 10.7% took the bird of its perch on 0.6720 support and the price dropped down to 0.6498 where the pair drifted sideways in to the end of the US session on Friday, closing at 0.6513. A the lowest point since 2009, technically, we have broken to the downside through key support of 0.6580 and on target for 0.6420.
NZD/USD hit on all sides
NZD/USD is being hurt from all sides, including domestic performances as well as external pressures which include lower global dairy prices and forecasts that weigh o the currency in respect of the RBNZ's outlook and potential easing bias. The focus for this week will be RBNZ’s OCR Review and markets are positioned for the probable outcome of a further cut to the OCR of 25bps to 3.0%.
Analysts at Deutsche explained, "Assuming that a 25bp rate cut is delivered, the focus therefore will be on the accompanying statement to see to what extent it opens the door to further policy easing at the subsequent meeting on 10 September and beyond, as is currently priced by the market."