NZD

New Zealand inflationary pressures continued to ease in the March quarter, although domestic prices remained uncomfortably sticky, likely keeping the prospect of rate cuts from the Reserve Bank of New Zealand a distant prospect.

Inflation remains key sticking point preventing interest rate cuts from the Reserve Bank of New Zealand, ensuring Wednesday’s first quarter consumer price inflation report will be closely watched by financial markets, especially should it print on the softer side of expectations.

While it may be one of the smallest G10 FX central banks, what the Reserve Bank of New Zealand (RBNZ) lacks in size it more than makes up for in terms of market punch, often sparking major moves in the New Zealand dollar under the leadership of Governor Adrian ‘Shock and’ Orr. Wednesday's interest rate decision may be no exception.

Having surged Friday on the back of a forecast from ANZ looking for an additional two hikes from the RBNZ, the NZD/USD has now given back those gains back following the latest RBNZ inflation expectation survey. What one hawkish forecaster giveth, 38 dovish forecasters have taketh away.

A late flurry of buying after New Zealand’s jobs report sent NZD/USD to the top of the G10 FX leaderboard on Tuesday, leaving in on track for another retest of the downtrend it’s been stuck in throughout the entirety of 2024.

Hold off on your imminent RBNZ rate cut bets, because if the tone of the bank’s chief economist on Tuesday is anything to go by, it appears to have little interest in pivoting towards rate cuts as other major central banks have.

NZD/USD's break above 60c ahead of the RBNZ's announced that they held rates at 5.5% again was shortly lived, and momentum has turned decisively lower. Ans there could be further downside to come.

If the RBNZ hike by 75bp tomorrow in line with the consensus, it will be their first hike of this magnitude on record.

Kiwi bulls appeared spooked last week as we saw gross longs closed at their second fastest rate on record.

Lower trading volumes due to Thanksgiving in the US made for a quiet session overnight, but that didn’t prevent the AUD/CAD cross making a ‘break’ for it.

The Kiwi dollar continues to go from strength to strength, as traders anticipate at least one more 25 bps hike at their meeting later this month.

Whilst net exposure to US 10-year treasury notes were at their most bearish level since the Pandemic began, CFTC data shows it is a function of longs covering.

NZD is the currency of New Zealand and is involved in some significant forex pairs. Discover everything you should know about NZD before you open a position.

A volatile candle seen during yesterday’s session has us on guard for a potential bullish breakout on the S&P 500 futures market today.

In today's first instalment of an Antipodean data double header, New Zealand Q2 GDP smashed expectations, expanding by 2.8% after a 1.4% rise in the March quarter.

After what felt long a long wait, oil prices finally broke out of their ranges after teasing bulls with an upside breakout since last week.

Global new covid cases are continuing to fall. China and Japan have seen a sharp fall in new cases. In NSW, the numbers are finally heading in the right direction, and in New Zealand, the seven-day rolling average has fallen from 66 at the end of August to 22.4.