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Kiwi breaks below 200 DMA

New Zealand dollar was the least volatile currency during the U.S. election day. Part of it was likely due to the fact that the RBNZ held a meeting on the next day. Widely expected rate cut didn't exactly matter as the currency joined others in a sell-off.
The pair has so far lost about 400 pips and closed lower in eight consecutive days. It closed last week below the 2015 - 2016 trendline and 200 DMA, which may now act as a resistance. Area between 0.6880 and 0.70 (00's, 38.2% retracement, 50 W…
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Kiwi falls after RBNZ cut official cash rate once more

The RBNZ cut the official cash rate to a record low of 1.75% from 2.00% yesterday. Governor Wheeler said that it was likely the last rate cut in this cycle but that they stand ready to intervene in the currency market at any time.
Kiwi was initially bought but reversed soon thereafter on intervention talk, aligning with the current U.S. dollar trade. The pair broke below 50 and 100 DMA today and is currently recovering from a sub 0.72 dip. Sellers may be waiting closer to 0.7250.
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BoE left rates unchanged

Bank of England left interest rate unchanged as market consensus expected at low level of 0,25 %. In the minutes though members of MPC stated that it is possible that BoE will lower interest rate this year if the risks of proccessing Brexit will start to influance the economy. On the other hand they hint that recent macro data are better then expected. We all should be watching closely as Brexit proccess will start in Autumn after the Elections.
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The suffering continues - big time now

The last few days have been killing me
I have been staring at the screen hours on end - in disbelief
My back hurts, I have a hangover from drinking too much - I am a wreck
These are not my favorite trading days - something to change in the future, I guess
I can not believe the price action in Nzd - it is up and then more up
Do these people not know that a rate cut is coming?
Anyway, the laugh is on me - I thought that I was doing great this month,
but this goes to show that you never know
Actual…
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Aussie breaks 100 week SMA

It will be a week since the RBA cut cash rate to a record low of 1.5%. After briefly trading below 0.75, Aussie sprang from 100 DMA and is up about 150 pips since then, flirting with the July high (0.7675).
The pair broke above 100 week SMA (~0.7635) for the first time since April 2013 and is eyeing the 2011 - 2016 support/resistance line near 0.7750. A rally to 0.80 seems quite possible in the weeks ahead.
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Rate cut for Kiwi looks likely

A rate cut by the RNZB looks likely on Wednesday evening
After the RBA rate cut last week, it is likely that New Zealand will follow
Interest rates are at 2,25% and will probably get lowered to 2%
Nzd is quite low against the Usd already - and a rate cut for Aud did not hurt it too much
I guess I will be building up shorts towards the decision,
because with all that is going on in the world the chance of a rate cut is very high
I do not expect NzdUsd to fall a lot though, and I will be careful t…
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RBA cuts again

The RBA cut its cash rate to a record low 1.50% from 1.75%. Rate statement does not look particularly dovish - there's no explicit hint of further easing though they didn't close the door on it either.
The reaction in the Aussie was in line with the cut being almost fully discounted. A spike lower was promptly reversed and the price was back to unchanged after a good hour. Still attractive yield, recovering commodities and Fed in no hurry to hike will keep the pair supported.
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TInna avatar
TInna 2 Ago

thanks for the info. very informative!

al_dcdemo avatar

Yw :) I'm glad that you find it so!

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Kiwi falls further

Kiwi sold off sharply at the start of the new trading day as the RBNZ proposed tightening lending standards on investment housing. That came after the bank announced an unscheduled economic outlook update to come on July 21th . Both are seen by the market as paving way for a rate cut in August.
The pair looks poised to close lower for the fifth consecutive session. It is currently testing strong support band between 0.6975 and 0.7025 which includes lows from June, 50 DMA and 0.70 big figure leve…
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Kiwi breaks below 50 DMA

Last week's RBA rate cut hasn't only impacted Aussie but has also contributed to the reversal in Kiwi. Overnight talk of additional macroprudential measures by the RBNZ to stem house price rises has been seen as laying ground for further rate cuts.
The pair fell more than 300 pips since last Tuesday, breaking below 50 DMA in the process. Some demand will definitely come in ahead of 100 DMA and 200 DMA but it may take a decline to August 2015 - January 2016 trendline before sentiment turns again.
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Aussie sells off after RBA rate cut

Aussie lost about 150 pips after the RBA cut cash rate to record low of 1.75% from 2.00%. Close to 50% pullback was met with new selling and the pair is back near post-release lows.
50 DMA is the first prominent support level but the real test will come in 0.7450 - 0.75 band which includes late March and early April lows, 0.75 big figure level and 38.2% retracement of the January - April uptrend. 0.7630 - 0.7650 has proved to be a near term cap.
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