The New Zealand Dollar, ” Talking Points
NZD/USD attempts to trace the decline after the Reserve Bank of New Zealand (RBNZ) meeting, but the exchange rate may continue to give back the advance from the April low (0.5843) in the middle of the failure of the attempt to push above the former support zone around 0.6170 (50% extension) to 0.6230 (38.2% expansion).
NZD/USD Rate down, Eyes April Low, Ahead of New Zealand’s Retail Sales Report
NZD/USD rebounds from a fresh monthly low (0.5921) in advance of the New Zealand 1Q Retail Sales report, but the update may produce a reaction to the downside of the exchange rate, as the private sector, consumption is expected to contract by 1.5% following the 0.7% increase in the last three months of 2019.
In response, the Reserve Bank of New Zealand (RBNZ) may take additional measures to support the economy, the central bank increases its. The Large-Scale Asset Purchase (LSAP) the programin November new zealandThe $ 60 billion new zealand$ 33 billionand I have to Adrian Orr and Co. may retain a dovish guidance at the next meeting on June 24, theMonetary Policy committee is ready to use additional monetary policy tools if and when necessary, as well as the reduction of the OCR (official cash rate) more.”
The progressive in the process of restart to the new zealand economy may force the RBNZ to deploy further unconventional tools, such as m & mthe embers agreed that a “least-regret” monetary policy approach is needed,” and it seems that the central bank will remain proactive in the fight against the economic shock of COVID-19 as officials insist that “there are policy instruments available that have not yet the leg must be used.”
However, the RBNZ seems in no hurry to implement a a negative interest rate policy (IT) as Governor Orr and Co. to support this “in addition to OCR cuts at this stage would not be efficientand it remains to be seen whether the central bank will implement more non-standard measures in the coming months as the mthe embers of note that the main thing necessary to support the recovery plan of the economy.”
In turn, the RBNZ may revert to a wait and see after the extension of the LSAP in the program, but the speculation for an IT in New Zealand may continue to drag on the NZD/USD, as much as President Of The Federal Reserve Jerome Powell tames paris, negative) of AMERICAN interest rates.
That said, the NZD/USD may continue to give back the advance from the April low (0.5843) in the middle of the failure of the attempt to push above the former support zone around 0.6170 (50% extension) to 0.6230 (38.2% expansion).
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Source: The Negotiation Of The View
- Keep in mind, the NZD/USD has not managed to retain the range from the second half of 2019, as the decline earlier this year, he produced a break of the October low (0.6204), with a “death cross”, which takes shape in March that the 50-Day SMA (0.5996) has crossed below the 200-Day SMA (0.6324).
- The negative slope in both the 50-Day SMA and the 200-Day SMA, and offer a bearish outlook for the NZD/USD, and the advance of the low level of the year (0.5469) seems to slow down in front of the former support zone around 0.6170 (50% extension) to 0.6230 (38.2% expansion) as both the price and the Relative Strength Index (RSI), the snap of the upward trend of the formations from This.
- NZD/USD extends the decline from earlier this month, the failure of the attempt to test the April high (0.6176), with a break/close below the 0.6000 (100%) for 0.6010 (161.8% expansion), the region, bringing 0.5880 (100% real) the area on the radar.
- Need a break of the April low (0.5843) to open the Fibonacci overlap around 0.5740 (78.6% retracement) to 0.5790 (61.8% retracement), with the next area of interest should come in around 0.5640 (261.8% expansion).
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— Written by David Song, Currency Strategist
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