empty
09.11.2017 01:15 PM
Global macro overview for 09/11/2017

The decision to leave the interest rates unchanged was largely expected. The bank also lifted its inflation forecasts to factor in the impact of new government policies and a weaker currency. At the press conference, Acting Reserve Bank Governor Grant Spencer said proposed Government changes would have little effect on the Bank's thinking in current economic conditions. Nevertheless, in he brought forward a potential rate hike to June 2019 from September that year. He added: " "Moving to a dual mandate is unlikely to have an impact on the way we run monetary policy. Currently, inflation was the Bank's primary objective but was not the sole objective". Moreover, Spencer reiterated the mantra the market participants know from the previous meetings already: "monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to adjust accordingly". At the end of the meeting, Spencer added, that RBNZ incorporated preliminary estimates of the impact of new government policies in four areas: new government spending; the KiwiBuild programme; tighter visa requirements; and increases in the minimum wage, but the outlook and the impact of this policies remain uncertain.

In conclusion, a dovish tone of the Spencer remarks and the already known RBNZ wait-and-see approach did not bring anything new to the more tightening monetary policy discussion. The New Zealand Dollar has fallen around 2.3% on a trade-weighted index basis since the new government was formed and is around 6.0% below where the bank forecast it would be in the September quarter.

Let's now take a look at the NZD/USD technical picture at the H4 time frame after the news was released. The market is at the key level now as it tests the technical resistance at the level of 0.6970 and the golden trend line resistance. Nevertheless, the key level to the upside is still the gray zone between the levels of 0.7057 - 0.7089. Only a sustained breakout through this zone would change the outlook to more bullish in the short-term.

This image is no longer relevant

Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

AUD/USD: What Do the "Australian Nonfarm Payrolls" Tell Us?

Australia's labor market has exceeded expectations—nearly all components of the April employment report came out in the "green zone." While the release had a few flaws, it overall favored

Irina Manzenko 11:12 2025-05-15 UTC+2

The U.S.–China Trade War Pause Has Been Priced In — What's Next? (A Possible Correction in #SPX and Bitcoin)

On Thursday, a clear slowdown is observed in the stock market rally—one could even say it has stalled. This is due to the market having already priced in the 90-day

Pati Gani 11:07 2025-05-15 UTC+2

The Market Fears Nothing

From an ugly duckling to a beautiful swan, the S&P 500 has shifted from a highly overbought stock index in early April to a considerably oversold one. Since 1950, there

Marek Petkovich 09:20 2025-05-15 UTC+2

What to Pay Attention to on May 15? A Breakdown of Fundamental Events for Beginners

A relatively large number of macroeconomic events are scheduled for Thursday, but very few are likely to trigger a strong market reaction. The second estimate of Q1 GDP and industrial

Paolo Greco 06:21 2025-05-15 UTC+2

GBP/USD Overview – May 15: The Dollar's Ordeal Continues

The GBP/USD currency pair continued its upward movement on Wednesday, which had started the day before. Recall that on Tuesday, there were no strong fundamental reasons for a significant sell-off

Paolo Greco 03:41 2025-05-15 UTC+2

EUR/USD Overview – May 15: Market Confidence in the Dollar Is Practically Nonexistent

The EUR/USD currency pair continued its recovery on Wednesday despite an empty macroeconomic calendar. We are not counting the sole inflation report from Germany, as it initially had no potential

Paolo Greco 03:41 2025-05-15 UTC+2

The Dollar Is Sentenced

Rumors are swirling. The sharp rally in the South Korean won has sparked speculation that Washington is pressuring its trade partners to strengthen their currencies. Donald Trump has repeatedly stated

Marek Petkovich 00:38 2025-05-15 UTC+2

The Pound Consolidates, Another Attempt at Upward Movement Expected

The UK labor market report showed that wage growth remains high despite a slight slowdown— the three-month average declined from 5.9% to 5.6%, and including bonuses, it decreased from 5.7%

Kuvat Raharjo 00:38 2025-05-15 UTC+2

Yen Resumes the Trend

Be careful what you wish for. Markets interpreted the halving of Japan's GDP forecasts for fiscal years 2025/2026 as a signal that the Bank of Japan would not resume

Marek Petkovich 00:38 2025-05-15 UTC+2

The Euro Is Losing Direction

Inflation in the eurozone remained at 2.2% in April, slightly above the 2.1% forecast, due to a somewhat stronger increase in core inflation. This rise is partially attributed

Kuvat Raharjo 00:37 2025-05-15 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.