Abstract:RBNZ holds course, NZ dollar surges
The New Zealand dollar is sharply higher in the Thursday session. Currently, NZD/USD is trading at 0.7113, up 0.02% on the day.
RBNZ maintains rates, QE
There were no surprises from New Zealands central bank, which held the course at its monthly policy meeting. As expected, policymakers held the Overnight Cash Rate at 0.25%, a record low. The RBNZ added that if needed, it was prepared to lower rates even further. The bank kept its QE programme (LSAP) unchanged and noted that it will take “considerable time and patience” before it reaches its inflation and employment goals.
The tone of the RBNZ was unmistakably dovish, and there was little to differentiate this rate statement from the February statement. This made it somewhat surprising that the New Zealand dollar has soared one percent and easily crossed into 71-territory. The likely explanation is a technical move by the currency – the New Zealand dollar punched above its April 5th high of 0.7069 on stop-loss activity after the RBNZ rate decision. Once that line was breached, NZD had significant room to the upside and recorded strong gains.
Higher prices could force RBNZ to rethink policy
The well-respected NZIER Business Confidence survey pointed to a slight improvement in business confidence in Q1 of 2021. Based on the survey, NZIER projected that GDP would rise by about 2 per cent in the first quarter. The survey noted that cost pressures have been building up, which has led to higher prices. A red hot housing market led the government to implement measures to discourage speculators, but these measures will take time to affect the housing sector. If CPI also moves higher, the central bank will likely have to rethink its ultra-dovish policy and may have to consider raising interest rates.
.
NZD/USD Technical
NZD/USD is putting pressure on resistance at 0.7144. This is followed by 0.7212, an important monthly resistance line
There is support at 0.6998. Close by, we have support at 0.6961
=================
WikiFX, a global leading broker inquiry platform!
Use WikiFX to get free trading strategies, scam alerts, and experts experience!
╔═══════════════════════╗
Android : cutt.ly/Bkn0jKJ
iOS : cutt.ly/ekn0yOC
╚═══════════════════════╝
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Easy Trading Online Broker Proud to be a trusted Forex trading platform. Fulfilling all the mentioned criteria, we provide: A trading platform that is easy to use and understand. Advanced market analysis tools To help you keep track of market changes and make effective trading decisions. Competitive trading fees It will help you save on your expenses. Professional customer support team Always available to advise when in doubt 24/7.
Easy Trading Online, a leading global CFDs broker regulated by ASIC, won the Best Online Trading Services Award at the BrokersView 2024 Award for Brokers with Outstanding Assessment·Middle East in Dubai. The award recognizes their excellence in trading services, leveraging technology and ensuring liquidity.
The Traders Fair Thailand 2024 was successfully held at Bangkok Shangri-La Hotel on February 3rd. As an exhibitor and sponsor, Easy Trading online attended the Expo with professional service team and extraodinary online trading experience on FX & CFDs.
Easy Trading Online, global CFDs & FX broker, is excited to announce its platinum sponsorship of the "Demo Trading World Cup Season 2." This sponsorship not only reinforces Easy Trading Online's commitment to the forex trading community but also highlights its status as nominated as one of the “the hottest brokers” and “the most popular brokers”in the popularity polls.