Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
ATFX

FCA License No: 760555

ATFX-search-icon
Client Portal
Start trading
rch

NZDUSD Continuation Pattern Trending This Week

NZDUSD has found strong support at the 0.5590 level, which should be low in place.

Traders can use the RBNZ news conference tomorrow for a potential entry opportunity.

NZDUSD – Daily Chart

nzdusd daily chart 0-Nov-22-2022-03-55-37-0105-AM

With a current price of 0.6098, there are around 400 pips of room to support.

New Zealand’s central bank is expected to raise interest rates by an unprecedented 75 basis points on Tuesday as it aims to get inflation under control.

The Reserve Bank will lift its benchmark rate to 4.25% from 3.5%, according to 15 economists surveyed by Bloomberg. That would mark the most significant hike since the RBNZ introduced the OCR in 1999 and will also be the highest level since 2008.

Rising inflation and almost record-low unemployment have given the RBNZ the green light to increase rates again after five straight 50-point hikes. The move contrasts with other global central banks, which are becoming more pessimistic about growth.

“Recently published data clearly argue the Reserve Bank should present a more aggressive face,” said Stephen Toplis, head of research at the Bank of New Zealand in Wellington. “But forward indicators are arguing for a much more cautious approach. Right here and now, we plummet for 75 points, but this is a line ball call.”

Some economists suggest that the RBNZ would opt for a 50-point increase. This stems from the full impact of its recent tightening that is yet to be felt, as many households on fixed mortgage rates have yet to roll over.

The Reserve Bank of Australia moved back to quarter-point rate hikes in October, blaming the impact of higher borrowing costs on households. The US Federal Reserve hints at a slower pace for its rate hike policy after softer inflation.

The RBNZ should get inflation under control even if it risks some negative impact on the economy, said ANZ New Zealand Chief Economist Sharon Zollner.

“Don’t underestimate what’s at stake here,” she said. “The Reserve Bank’s inflation-targeting credibility is on the line in a pretty binary fashion. The risk of causing a slightly harder landing than necessary in the economy just can’t compete in terms of potential regrets.”

Last Updated: 22/11/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

Recent news

Recent news
Dow Jones Targets Resistance Ahead of FOMC Minutes

The Dow Jones Industrial (US30) index is heading for a key resistance level ahead of FOMC ...

EURUSD Recent news
EURUSD Forecast For This Week’s Economic Data

The EURUSD exchange rate faces two days of economic data, and the pair could see volatilit...

Recent news
Oil Looks for Support Following OPEC+ Production

Oil prices were mixed early in the week over reports that OPEC+ was looking at a 500k dail...

Recent news
GBPUSD Slips After UK Mini-Budget Announcement

GBPUSD was lower after the latest budget from the UK government. An increase in the energy...

Recent news
Alibaba Shares Dip Lower From Sales Misprojection

Alibaba’s Q3 earnings improved, but the slower Chinese economy dragged on sales.  The e-co...