H4
currently at trendline support
might consolidate
New Zealand dollar dives on dovish central-bank message
The New Zealand dollar was the weakest major currency on Wednesday as its central bank joined the dovish global chorus of monetary policy makers.
The accommodative policy shift from New Zealand comes as European Central Bank President Mario Draghi said the central bank was starting to worry about the side effects of negative interest rates, but remained ready to act if the eurozone economy showed further weakness.
The New Zealand dollar NZDUSD, -1.5055% which fell sharply after a dovish policy update from the Reserve Bank of New Zealand, was the worst performer among G-10 currencies.
“Given the weaker global economic outlook and reduced momentum in domestic spending, the more likely direction of our next OCR move is down,” said the central bank. During its last update in February, the central bank noted that the next rates move could either be up or down.
The kiwi last bought $0.6799, down 1.6% against its U.S. rival, its lowest level in nearly three weeks, according to FactSet data.
“The RBNZ appears to be the first G-10 central bank signaling that its next move is more likely to be a cut, instead of a hike. Yes, the Fed and the ECB turned dovish at their latest meetings, dismissing any hikes this year, but they have not yet turned their eyes to the cut button,” said Charalambos Pissouros, senior market analyst at JFD. The Reserve Bank of Australia also said that the probabilities of rates moving up or down were balanced.
New Zealand’s statement comes as the ECB earlier downgraded its outlook for eurozone growth this year to 1.1% from 1.7% and rolled out a fresh batch of bank stimulus, as Italy entered a recession and Germany’s economy was showing signs of contraction.
source:
marketwatch.com/story/new-zealand-dollar-dives-on-dovish-central-bank-message-2019-03-27?siteid=yhoof2&yptr=yahoo
currently at trendline support
might consolidate
New Zealand dollar dives on dovish central-bank message
The New Zealand dollar was the weakest major currency on Wednesday as its central bank joined the dovish global chorus of monetary policy makers.
The accommodative policy shift from New Zealand comes as European Central Bank President Mario Draghi said the central bank was starting to worry about the side effects of negative interest rates, but remained ready to act if the eurozone economy showed further weakness.
The New Zealand dollar NZDUSD, -1.5055% which fell sharply after a dovish policy update from the Reserve Bank of New Zealand, was the worst performer among G-10 currencies.
“Given the weaker global economic outlook and reduced momentum in domestic spending, the more likely direction of our next OCR move is down,” said the central bank. During its last update in February, the central bank noted that the next rates move could either be up or down.
The kiwi last bought $0.6799, down 1.6% against its U.S. rival, its lowest level in nearly three weeks, according to FactSet data.
“The RBNZ appears to be the first G-10 central bank signaling that its next move is more likely to be a cut, instead of a hike. Yes, the Fed and the ECB turned dovish at their latest meetings, dismissing any hikes this year, but they have not yet turned their eyes to the cut button,” said Charalambos Pissouros, senior market analyst at JFD. The Reserve Bank of Australia also said that the probabilities of rates moving up or down were balanced.
New Zealand’s statement comes as the ECB earlier downgraded its outlook for eurozone growth this year to 1.1% from 1.7% and rolled out a fresh batch of bank stimulus, as Italy entered a recession and Germany’s economy was showing signs of contraction.
source:
marketwatch.com/story/new-zealand-dollar-dives-on-dovish-central-bank-message-2019-03-27?siteid=yhoof2&yptr=yahoo
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.