NZDUSD moves above a swing area from earlier this year between 0.6184 and 0.6212

The RBNZ raise rates by 75 basis points and the statement was thought to be more hawkish. Below are some of the headlines

• Monetary conditions need to tighten further
• Remains resolute in achieving monetary policy remit
• Productive capacity of the economy is being constrained by broad-based labour shortages, and wage pressures are evident
• Core consumer price inflation too high, employment is beyond its maximum sustainable level,
• Household spending remains resilient
• Employment levels are high, and income growth and household savings are supporting spending
• Committee agreed that the OCR needs to reach a higher level, and sooner than previously indicated,
• Aggregate demand continues to outstrip New Zealand’s capacity to supply goods and services
• Near-term inflation expectations have risen.
• A range of indicators continue to signify broad-based inflation pressure

ANZ in New Zealand are tipping a 5.75% peak OCR, which is still 150bps away. The Reserve Bank of New Zealand next meet in 3 months time, on February 22.

The NZDUSD
NZD/USD

The NZD/USD is a commonly offered currency pair representing the New Zealand dollar or Kiwi and US dollar.  The pair is popular for exposure into a commodity currency, i.e. the NZD, which helps capture risk appetite for forex traders. Like its Antipodean counterpart, the Australian Dollar, the NZD/USD is seen as a carry trade, due in part to interest rate differentials which favor the NZD. The NZD is the world’s seventh most liquid pair at the time of writing with the USD being the world’s most traded currency and the NZD being the tenth. What Affects the NZD/USD? The NZD/USD is offered at virtually every retail forex brokerage and is a common pair for traders to have experience with.  The pair moves on investor sentiment and can be much more volatile than other pairs such as the EUR/USD, GBP/USD and others. Given New Zealand is the world’s largest exporter of milk powder, 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 help move the currency pair.  Other factors of note for the NZD/USD include export volumes to China as well as other important economic data releases from China.  Central banks also play a primary role in the direction of the currency pair with both the US Federal Reserve and the Reserve Bank of New Zealand being closely monitored by investors.  Monetary policy is more than capable of abruptly moving the NZD/USD, which can oscillate much more than other normal pairs.

The NZD/USD is a commonly offered currency pair representing the New Zealand dollar or Kiwi and US dollar.  The pair is popular for exposure into a commodity currency, i.e. the NZD, which helps capture risk appetite for forex traders. Like its Antipodean counterpart, the Australian Dollar, the NZD/USD is seen as a carry trade, due in part to interest rate differentials which favor the NZD. The NZD is the world’s seventh most liquid pair at the time of writing with the USD being the world’s most traded currency and the NZD being the tenth. What Affects the NZD/USD? The NZD/USD is offered at virtually every retail forex brokerage and is a common pair for traders to have experience with.  The pair moves on investor sentiment and can be much more volatile than other pairs such as the EUR/USD, GBP/USD and others. Given New Zealand is the world’s largest exporter of milk powder, 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 help move the currency pair.  Other factors of note for the NZD/USD include export volumes to China as well as other important economic data releases from China.  Central banks also play a primary role in the direction of the currency pair with both the US Federal Reserve and the Reserve Bank of New Zealand being closely monitored by investors.  Monetary policy is more than capable of abruptly moving the NZD/USD, which can oscillate much more than other normal pairs.
Read this Term initially moved lower, on the decision, and the move lower briefly dipped below the 200 hour moving average. Recall from Monday and Tuesday, the price stalled against that moving average level and bounced higher. .