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breaking news  NZDUSD biggest move today.  RBNZ meets this week and is expected to tighten by 50 basis points


NZDUSD is one of the biggest moves today

The NZDUSD is one of the biggest moves today with a 1.19% gain on the day.

The move higher saw the pair break above last Thursday and Friday’s swing zone highs near 0.6412. This breakout led to another move above a higher swing zone near 0.64522.

The high price for the day reached 0.6491 before reversing lower in the New York session.

As I type, the pair is trading at its New York session low and retesting the 0.64522 level. Traders will be watching this level of support. Stay on top and buyers stay in control. Conversely, going down and a rotation towards the 0.6412 level cannot be totally ruled out (as long as the price remains below 0.64522).

Hold support and break above the high, and traders will look to the 38.2% move lower from the April 5 high at 0.65289.

Basically, the RBNZ will meet this week and are expected to raise rates by 50 basis points to 2.0% (the announcement will be at 10 p.m. ET on Tuesday).

Westpac expects a 50 basis point hike saying:

  • We expect the Reserve Bank to raise the official exchange rate another 50 basis points to 2.00% in the May monetary policy statement.
  • We also expect the RBNZ to provide a clear signal that there is more tightening ahead. The RBNZ has come to the conclusion that stronger action early on will reduce the need for an even more painful spike in interest rates going forward. This prompted them to raise the cash rate by 50 basis points in April, opening the door for further significant increases at future meetings.
  • We believe recent developments will leave the RBNZ OCR forecast peak close to the 3.4% peak forecast in February. However, with a faster rate of tightening, this peak will be reached sooner.

The RBNZ has raised rates 4 times since taking off on October 6, 2021. The first three were 25 basis points. The last hike on April 13 was 50 basis points.

breaking news  NZDUSD biggest move today.  RBNZ meets this week and is expected to tighten by 50 basis points

RBNZ rate hike since takeoff

The price of the NZDUSD

USD/USD

NZD/USD is a commonly offered currency pair representing the New Zealand Dollar or Kiwi and US Dollar. The pair is popular for exposure to a commodity currency, namely the NZD, which helps capture traders’ risk appetite. Like its Antipodean counterpart, the Australian dollar, NZD/USD is seen as carry, in part due to interest rate differentials favoring the NZD. The NZD is the seventh most liquid pair in the world at the time of writing, with the USD being the most traded currency in the world and the NZD being the tenth. What affects NZD/USD? NZD/USD is offered by virtually all retail forex brokerages and is a common pair that traders may have experience with. The pair moves based on investor sentiment and can be much more volatile than other pairs such as EUR/USD, GBP/USD and others. Given that New Zealand is the world’s largest exporter of powdered milk, this metric is a key factor when driving the pair. Any sensitivity to milk powder exports is captured via the NZD/USD. Additionally, tourism is a key contributor to the New Zealand economy and as such helps move the currency pair. Other factors of note for NZD/USD include export volumes to China as well as other important economic data releases from China. Central banks also play a huge role in the direction of the currency pair, with the US Federal Reserve and the Reserve Bank of New Zealand being closely watched by investors. Monetary policy is more than capable of sharply moving NZD/USD, which can swing much more than other normal pairs.

NZD/USD is a commonly offered currency pair representing the New Zealand Dollar or Kiwi and US Dollar. The pair is popular for exposure to a commodity currency, namely the NZD, which helps capture traders’ risk appetite. Like its Antipodean counterpart, the Australian dollar, NZD/USD is seen as carry, in part due to interest rate differentials favoring the NZD. The NZD is the seventh most liquid pair in the world at the time of writing, with the USD being the most traded currency in the world and the NZD being the tenth. What affects NZD/USD? NZD/USD is offered by virtually all retail forex brokerages and is a common pair that traders may have experience with. The pair moves based on investor sentiment and can be much more volatile than other pairs such as EUR/USD, GBP/USD and others. Given that New Zealand is the world’s largest exporter of powdered milk, this metric is a key factor when driving the pair. Any sensitivity to milk powder exports is captured via the NZD/USD. Additionally, tourism is a key contributor to the New Zealand economy and as such helps move the currency pair. Other factors of note for NZD/USD include export volumes to China as well as other important economic data releases from China. Central banks also play a huge role in the direction of the currency pair, with the US Federal Reserve and the Reserve Bank of New Zealand being closely watched by investors. Monetary policy is more than capable of sharply moving NZD/USD, which can swing much more than other normal pairs.
Read this term on each date:

  • October 6 0.6912
  • November 24, 0.6876
  • February 23, 0.6717
  • April 13 0.6797

Although the price is far from the low reached on May 12 at 0.6217, the current price of 0.6452 is at the lowest level since the last 4 meetings.


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