Still ranging like a Range Rover! The range on NZD/USD remained intact yesterday as the Kiwi erased its losses from Wednesday. After hitting an intraday low of .8121 and an intraday high of .8282, NZD/USD finished the day 24 pips higher at .8229.
The Reserve Bank of New Zealand decided that now’s not a good time to hike rates as the economic problems of Europe and the U.S. continue to pose threats to global growth. Yes, its economy is doing much better relative to others’, but it decided not to base its decision on its domestic situation alone. After all, its exports industry relies heavily on the economic performance of its trade partners. As a result, the RBNZ kept rates steady at 2.50% and it is now adopting a wait-and-see approach.
If you’re planning to trade the Kiwi today, I suggest you keep an eye on that range. For the past few days, the Kiwi has been caught in a tug-o-war against the Greenback, and in the process, it has established solid support and resistance levels. Today’s U.S. reports could provide the catalyst for a breakout, so stay sharp!
It sure was a good day to be a comdoll! Just like its comdoll siblings, the New Zealand dollar trampled all over the dollar last Friday, as the Kiwi closed 67 pips higher at .8296.
Earlier today, the Westpac consumer sentiment report was released, printing a score of 112.0. This was exactly the same score that we saw last month and indicates that consumer sentiment remains steady in New Zealand.
Looking ahead, I wonder if the Kiwi can stay afloat and post further gains. Take note that Fed will be holding an FOMC meeting later this week, and if it appears that Helicopter Ben Bernanke will be dropping more moolah on the U.S. economy, it could give the Kiwi a boost.
Why?
Three words (and no, it ain’t “I love you”). I’m referring to interest rate differential! With the Fed committed to lower rates and the RBNZ not completely ruling out the possibility of a rate hike, the New Zealand dollar could stand to benefit from the difference in interest rates.
Make sure you stay on your toes, as we could be in for a wild week!
After falling to its intraday low at .8172, the Kiwi hustled some muscle during the New York session to end the day at .8258. Too bad it wasn’t enough to end the day with a win! NZD/USD closed 4 pips below its opening price of .8262. Drats!
The Westpac Consumer Sentiment for Q3 2011 was released yesterday but it did very little to offset the bearish vibes brought about by risk aversion and falling commodity prices. It came in at 112.0 which is just the same reading we saw during the previous quarter. Digging deeper into the report, I found out that the service sector actually got weaker in June to August.
Today we’ll get dibs on New Zealand’s current account for Q2 2011 at 10:45 pm GMT. Market junkies are anticipating a 690 million NZD deficit but if the report prints a figure better than the forecast, we may just see the Kiwi rally. So watch out!
After a poor start to the day, the Kiwi managed to salvage some pride and erased some of its early losses. After hitting an intraday low at .8164, NZD/USD recovered during the New York session and finished at .8216, marking a 42-pip loss on the day.
Earlier today, current account figures were released and unfortunately, they came in worse-than-expected. A deficit of 920 million NZD was posted for the 2[SUP]nd[/SUP] quarter, after it was expected to print a figure of 620 million NZD. This was also much larger than the 1[SUP]st[/SUP] quarter’s deficit of 100 million NZD. However, it doesn’t seem to have affected the Kiwi too much, as the pair has remained steady as of this writing.
Looking ahead, we could be in for some wild action later today, as quarterly GDP data will be available at 10:45 pm GMT. Word is that the New Zealand economy grew by 0.5% last quarter, which would mark the third consecutive quarter of positive growth. If you’re the type who loves trading the news, this may provide the volatility that makes news trading so enticing!
Just like most of its homies in the FX hood, the Kiwi also fell victim to the dollar’s strength during yesterday’s trading. NZD/USD opened at .8216 and tumbled all the way down to its closing price at .8003.
Aside from risk aversion, RBNZ Governor Bollard’s remarks about the central bank’s decision to keep rates on hold during its last meeting also weighed down on the Kiwi. According to the head honcho, policymakers really don’t see any need to hurry in raising interest rates with all the uncertainty in the global economy.
And it looks like the bears won’t be done munching on the Kiwi’s pips anytime soon. Earlier today, New Zealand’s GDP figures for Q2 2011 were released. The report printed a measly growth of 0.1% and disappointed the market consensus which was for a 0.5% uptick. Yikes!
But then again, perhaps risk appetite would soon pick up and allow the Kiwi to pare some of its losses. Make sure you’re on your toes for any shift in market sentiment, ayt?
Once again, risk aversion was the primary focus of the market yesterday, which resulted in the Kiwi taking a huge dive across the board. By the end of the U.S. trading session, the Kiwi gave up 183 pips to the dollar and 168 pips to the yen.
Risk aversion was caused by a combination of two main factors. First, New Zealand’s quarterly GDP report came in worse than expected. It showed that the economy only grew 0.1%, and not 0.5% as initially expected. The only good news from the GDP report was that the first quarter figure was revised up to 0.9% from 0.8%.
Second, The PMI reports that were published by both China and Europe were below the baseline 50. This meant that businesses in the region were contracting. As a result, traders and investors grew even more jittery about the already weak global growth.
No more data on New Zealand’s economic calendar, so don’t expect any wild moves from the Kiwi today. One important thing to note though that it is a Friday, which could mean that traders could start taking profit on the recent strong dollar rally!
Ouch! The Kiwi stood out like a sore thumb among the comdolls as it was the only currency among the clique that lost against the dollar on Friday. NZD/USD closed the week at .7733, 88 pips below where it opened on Friday’s trading.
What hurt the Kiwi’s performance Friday?
There wasn’t any economic report released from [New Zealand](http://www.babypips.com/school/new-zealand.html) which leads me to believe that perhaps the currency’s loss was primarily because of the market’s risk averse sentiment. Looking at what happened in the commodities markets, it looks to me that the Kiwi mimicked the downward move on copper and silver.
I also have a feeling that the bad vibes brought about by the worse-than-expected GDP report we saw on Thursday continued to weigh down the Kiwi. If I’m right about this, we may just see the Kiwi slip below the .7700 handle following the disappointing [trade balance](http://www.babypips.com/forexpedia/Trade_Balance) report we saw earlier. Government data showed that the country’s trade deficit grew more than expected in August. Imports outpaced exports by 641 million NZD while analysts had only predicted a deficit of 315 million NZD. Yikes!
But then again, that’s just me. Who knows, risk appetite could pick up and the Kiwi could hustle some muscle up the charts!
After days of bleeding, the Kiwi finally managed to bandage its wounds and stay afloat yesterday. Despite the higher-than-expected trade balance deficit, NZD/USD was able to post its first positive day in five days as it closed the U.S. trading session 25 pips higher from its opening price.
New Zealand’s trade balance for August showed a 641 million NZD deficit, more than double the expected amount. The huge deficit was the inability of exports to keep up with the huge surge in imports.
No economic reports on New Zealand’s forex calendar today so don’t expect the Kiwi to exhibit a lot of volatility. Keep a close eye on those previous day highs and lows since we could see the Kiwi just move sideways and range throughout the day.
Let’s all give a high five to the comdolls! Yesterday the Kiwi joined its comdoll buddies and rallied against the Greenback on a wave of risk appetite in markets. NZD/USD even tipped an intraday high of .7958 before it leveled off to close 81 pips above its open price.
The economic boards were empty in New Zealand yesterday, but that didn’t stop the Kiwi bulls from charging! An increased possibility of a solution to the euro zone crisis spurred on risk appetite, and boosted high-yielding currencies like the Kiwi.
Will the NZD/USD gain for the third day in a row today? Once again no news report is scheduled from New Zealand, but I bet there will be plenty of other news reports to influence comdoll price action. Make sure you don’t miss any of it!
Poor, battered Kiwi! The Kiwi turned out to be one of the biggest losers in the last 24 hours as risk aversion managed to rear its ugly head again. NZD/USD, which started out the day strongly at .7877, found itself drowning at .7770 by the end of the U.S. trading session.
Uncertainty was the primary culprit behind risk appetite. Apparently, the market was very worried about the upcoming German EFSF vote, which led to a huge risk sell-off.
Today, the important economic report to keep an eye out for is the building consents data. Last month, building consents were reported to have risen by 13.0%. If the report later manages to beat that figure, we could see the Kiwi recover some of its losses.
With Fitch announcing a surprise downgrade of New Zealand’s sovereign debt, the Kiwi stood no chance against the Greenback. NZD/USD slipped 53 pips to .7717, despite a healthy rise in building consents.
Surprise, surprise! Fitch caught many off guard as it decided to announce a downgrade of New Zealand’s debt rating from AA+ to AA. The credit rating agency cites New Zealand’s high level of external debt, which was at 83% of GDP at the end of 2010, as one of the main reasons for the downward revision.
Looking on the bright side, it seems the domestic construction industry has been busy lately. Building consents rose 12.5% last month, following the 14.3% increase in July. Because of its massive rebuilding efforts, New Zealand has had plenty of construction work on its hands as new homes are built for those who have been displaced by the Christchurch earthquake.
Sadly, today’s only report, the NBNZ business confidence index, wasn’t as upbeat as its reading dropped from 34.4 to 30.3 in September. Using my mad detective skillz, I dug a little deeper into the report and noted that businesses had become cautious about investing and hiring. And they aren’t feeling too confident about the outlook either. Many are expecting business activity to slow down in the future. Talk about low confidence!
That’s all for today, folks! If you plan on trading NZD/USD, remember to keep a close eye on risk sentiment. Also, keep in mind that the growth outlook for New Zealand is still widely considered relatively attractive compared to many major economies, so any losses on NZD/USD we might see in the near future may be short-lived. Good luck, kids!
Thanks to a couple of credit rating downgrades, the New Zealand dollar slumped to its six-month low against the Greenback. NZD/USD tumbled by 94 pips from its .7717 open price and ended at .7623. Will it have a chance to recover this week?
As my buddy Forex Gump predicted, S&P would follow with its own credit rating downgrade for New Zealand after Fitch made theirs last week. S&P also expressed their concern about the country’s growing external deficit as their main reason for slashing New Zealand’s rating from AA+ to AA. The credit rating agency cited the huge costs incurred during the rebuilding after the Christchurch earthquake as one of the factors that contributed to New Zealand’s large debt.
Today, only the NZIER business confidence index is due from New Zealand. The index rebounded from -27 to +27 during the second quarter of this year but it could show a drop for the third quarter, as global economic problems resurfaced then. Keep an eye out for the actual release at 9:00 pm GMT since a weak figure could push the Kiwi much lower against its counterparts.
That’s all folks! And I really mean it! There are no other economic figures due from New Zealand for the rest of the week, but the Kiwi could be still in for some wild moves as other economies unleash top-tier data. Make sure you get a good feel of market sentiment by reading the rest of my daily economic commentaries!
For the fourth day in a row, the Kiwi failed to get some lovin’ from the currency bulls as risk aversion and poor economic data teamed up against the comdolls. NZD/USD fell to a fresh six-month low at .7608 before it closed 66 pips lower than its open price.
With New Zealand’s NZIER business confidence report disappointing expectations, who could blame the Kiwi bears for attacking? The data came in at a 25 reading for the third quarter, a bit below the 27 index figure it registered in the second quarter. Not only that, the ANZ commodity prices also showed that New Zealand’s commodity exports fell by 1.3% in September, its fourth consecutive monthly slide.
No other news reports are scheduled for release from New Zealand today, but that doesn’t mean you can sit back and relax! Why don’t you take a look at the economic calendar to see if there are reports from other countries that might affect your favorite pairs?
What a finish! NZD/USD was off to a weak start during the Asian session as it retested its former lows around .7500. However, the pair refused to lag behind as it pulled up and finished 51 pips up from its .7549 open price. Was that the start of a reversal or was it merely a retracement?
New Zealand didn’t release any economic reports yesterday so NZD/USD was tossed this way and that by risk sentiment and data from other comdoll economies. In particular, dovish remarks during the RBA monetary policy statement weighed on NZD/USD during the Asian session as the central bank expressed inclination for cutting interest rates. For more details on the recent RBA statement, check out my daily economic commentary on Australia.
Towards the end of the U.S. session, when Fed head Bernanke delivered his testimony on economic outlook and monetary policy, NZD/USD was able to bounce back and erase its losses for the day. That was because the Fed chairman also talked about the possibility of more easing, causing the U.S. dollar to lose its appeal. Find out what else Bernanke had to say by reading my U.S. economic commentary.
New Zealand won’t be releasing any data again for today, which means that NZD/USD could be at the mercy of risk sentiment again. Stay on your toes at all times!
Thank you, risk appetite! As risk sentiment improved, the Kiwi and its comdoll brethren found the strength to climb up the charts. As a result, NZD/USD ended the day 59 pips higher at .7661. That’s two in a row now, baby!
Commodities rebounded yesterday as risk appetite continued to pick up. Consequently, the Kiwi was able to ride the risk rally despite the lack of New Zealand reports. Y’all know how the Kiwi rolls! Where commodities go, it usually follows!
It looks like we’ll have to keep monitoring risk appetite today since New Zealand won’t be releasing any reports again. That being said, be sure to check out the ECB and BOE rate statements later in the day. They could dictate risk sentiment, and thus, price action for the Kiwi! Good luck!
Ain’t nothing gonna stop the Kiwi! The New Zealand dollar chalked up another day of wins against the Greenback as risk appetite extended its stay in the markets. Last time I checked, NZD/USD was already testing the .7700 handle. Will that level hold or will we see a breakout today?
New Zealand didn’t release any economic data and isn’t set to release any today. However, with the U.S. NFP report on tap, we could see some big moves from NZD/USD. Bear in mind that the NFP printed a big fat zero for August and might print another dismal figure for September. If that happens, risk aversion could return and force NZD/USD to return its recent gains. Make sure you read my U.S. economic commentary for more details on the upcoming NFP report!
With no reports to lift it up, the Kiwi had a hard time taking flight last Friday. NZD/USD recorded its first slide in four days as it dropped 20 pips to close at .7702. Has the Kiwi’s comeback faltered or will it find a second wind?
For a while, it seemed as though the Kiwi was preparing to climb even higher. Positive U.S. labor market data supported risk taking and pushed NZD/USD to a high of .7798. However, news of how Fitch downgraded the credit ratings of Italy and Spain soon reversed market sentiment, pushing NZD/USD back down to erase its gains for the day.
Not much to look forward to in New Zealand this week. It looks like the week’s biggest report will be today’s REINZ HPI, which printed a 0.5% increase in house prices in August. If September prints a healthy figure, it could result in a mini rally, but I wouldn’t expect big moves from this report. You’re better off tracking risk sentiment if you plan to trade the Kiwi. Good luck, kids!
Fly Kiwi, fly! The New Zealand dollar soared up the charts yesterday, posting a ridonculous 165-pip gain versus the dollar to close at .7841. Can the Kiwi continue its good fortune today?
No hard hitting news coming out from New Zealand, so make sure you keep an ear out for any developments over in Europe regarding ongoing debt and bank recapitalization issues. Positive talks between European politicians and finance leaders was the major reason why we saw risk appetite pick up yesterday, and I suspect these issues to be the dominating themes for the remainder of the week.
I guess chalking up two big wins in a row was too much to ask for from the Kiwi! After putting up ginormous gains on Monday, the comdoll was forced to give up a few pips as it weakened against the Greenback yesterday. At the end of the day, NZD/USD closed at .7825, down 17 pips on the day.
Sadly, it was revealed yesterday that the Rugby World Cup, which was held in New Zealand, didn’t do much to boost spending in September. Credit card receipts only rose 0.4% last month, which is a far cry from the 1.1% increase that investors were expecting to see.
On the other hand, the REINZ HPI report, which was released just a few hours ago, bore better news. It showed a decent 1.7% uptick in house prices last month, up from 0.5% in August. However, it doesn’t seem to be affecting sentiment for the Kiwi so far, as the comdoll has been falling since the start of the day. In times like these, it’s best to keep risk sentiment in check. Good luck, kids!
Winner winner, Kiwi dinner! The New Zealand dollar dominated the charts like the blackjack team from MIT owned Vegas, as NZD/USD double down and closed at .7959, up 217 pips from its lows of the day!
With risk sentiment on a high, the Kiwi was one of the biggest winners in yesterday’s trading action. The rise in commodities like gold and copper also helped the New Zealand dollar, allowing it to touch its highest level versus the dollar in two weeks.
No data lined up from New Zealand, but as yesterday showed, you don’t need data to climb up the charts as long as you have sentiment on your side! Keep a close eye out for risk sentiment, as this should continue to be the major driver of Kiwi trading for the rest of the week.