13 May 2015
No rate cut hints by the RBNZ, stay long NZD/USD – Growth Aces
FXStreet (Barcelona) - The Growth Aces Research Team comments on the key developments surrounding rate cut expectations by the RBNZ, and further shares the trade setup for NZD/USD, maintaining a long position targeting 0.7600.
Key Quotes
“The Reserve Bank of New Zealand said that the recent fall in the NZD, notably against the AUD, was helpful, but the kiwi continued to trade above sustainable levels versus a currency basket."
“RBNZ governor Graeme Wheeler said: “We still see the exchange rate unjustified and unsustainable, so we would like to see more movement downwards in the exchange rate”.”
“The RBNZ is planning new loan restrictions to tackle record-high house prices in Auckland, which it said is posting significant risks to the country's financial system. The RBNZ said residential property investors in Auckland would be required to have a deposit of at least 30% on bank loans, while restrictions on high loan-to-value mortgages in the rest of the country would be loosened."
“The market was looking for any rate cuts hints, but the RBNZ did not comment directly on monetary policy and disappointed traders. The NZD/USD recovered today from yesterday’s low at 0.7318. Investors are now focused on inflation data due to be released next week.”
“In our opinion a rise in the AUD/NZD lowers probability of a rate cut in June. Our trading strategy for the NZD/USD is to get long at 0.7370.”
“Resistance: 0.7481 (10-dma), 0.7520 (55-dma), 0.7524 (high May 11)”
“Support: 0.7318 (low May 13), 0.7276 (low Mar 18), 0.7273 (low Mar 12)”
“NZD/USD: buy at 0.7370, if filled – target 0.7600, stop-loss 0.7285, risk factor **”
Key Quotes
“The Reserve Bank of New Zealand said that the recent fall in the NZD, notably against the AUD, was helpful, but the kiwi continued to trade above sustainable levels versus a currency basket."
“RBNZ governor Graeme Wheeler said: “We still see the exchange rate unjustified and unsustainable, so we would like to see more movement downwards in the exchange rate”.”
“The RBNZ is planning new loan restrictions to tackle record-high house prices in Auckland, which it said is posting significant risks to the country's financial system. The RBNZ said residential property investors in Auckland would be required to have a deposit of at least 30% on bank loans, while restrictions on high loan-to-value mortgages in the rest of the country would be loosened."
“The market was looking for any rate cuts hints, but the RBNZ did not comment directly on monetary policy and disappointed traders. The NZD/USD recovered today from yesterday’s low at 0.7318. Investors are now focused on inflation data due to be released next week.”
“In our opinion a rise in the AUD/NZD lowers probability of a rate cut in June. Our trading strategy for the NZD/USD is to get long at 0.7370.”
“Resistance: 0.7481 (10-dma), 0.7520 (55-dma), 0.7524 (high May 11)”
“Support: 0.7318 (low May 13), 0.7276 (low Mar 18), 0.7273 (low Mar 12)”
“NZD/USD: buy at 0.7370, if filled – target 0.7600, stop-loss 0.7285, risk factor **”