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12 Sep 2013
NZD/USD soars on the most hawkish G-10 Central Bank
FXstreet.com (Athens)- Indeed, the NZD/USD is trading heavily upwards on a hawkish rhetoric on behalf of RBNZ; the RBNZ is by far the most hawkish G-10 Central Bank out there.
NZD/USD skyrockets on hawkish RBNZ
After the today’s statement nobody is dubious about which central bank catapults as the most hawkish bank in the G-10 countries. Indeed, everybody agrees that the pole position belongs to the RBNZ. In today’s statement, the Central Bank of New Zealand, made a minor shift in rhetoric accompanying the RBNZ’s unchanged statement. Elaborating on, the bank served notice that OCR hikes "will likely be required next year.” Needless to say that the mostly hawkish development was hidden behind the curtains; the investors might take upon deep consideration the RBNZ statement as of “Forecasts for the 90-day bill rate (a proxy for the likely trajectory of the policy rate) were raised materially.”
Technical Analysis on NZD/USD
Gareth Berry on behalf of UBS suggests that “So the RBNZ now thinks that once the first hike is administered in Q2 next year, further hikes will follow in quick succession.” All in all, while RBNZ continue to see the “kiwi” as overvalued, the more hawkish RBNZ policy assessment drove the NZ dollar 0.6% stronger overnight. At the time of writing, the pair is trading at 0.8123 area, up 0.53%. The FXstreet.com Trend Index shows the pair to be slightly bullish on a 15 minutes timeframe. Daily pivot point support can be found at 0.8060, 0.8040, 0.8020 and resistance at R1: 0.8135 R2:0.8156, R3: 0.8201, respectively.
NZD/USD skyrockets on hawkish RBNZ
After the today’s statement nobody is dubious about which central bank catapults as the most hawkish bank in the G-10 countries. Indeed, everybody agrees that the pole position belongs to the RBNZ. In today’s statement, the Central Bank of New Zealand, made a minor shift in rhetoric accompanying the RBNZ’s unchanged statement. Elaborating on, the bank served notice that OCR hikes "will likely be required next year.” Needless to say that the mostly hawkish development was hidden behind the curtains; the investors might take upon deep consideration the RBNZ statement as of “Forecasts for the 90-day bill rate (a proxy for the likely trajectory of the policy rate) were raised materially.”
Technical Analysis on NZD/USD
Gareth Berry on behalf of UBS suggests that “So the RBNZ now thinks that once the first hike is administered in Q2 next year, further hikes will follow in quick succession.” All in all, while RBNZ continue to see the “kiwi” as overvalued, the more hawkish RBNZ policy assessment drove the NZ dollar 0.6% stronger overnight. At the time of writing, the pair is trading at 0.8123 area, up 0.53%. The FXstreet.com Trend Index shows the pair to be slightly bullish on a 15 minutes timeframe. Daily pivot point support can be found at 0.8060, 0.8040, 0.8020 and resistance at R1: 0.8135 R2:0.8156, R3: 0.8201, respectively.