NZD/JPY: Kiwi bulls in command after RBNZ

NZD/JPY jumped to 75.80 heading towards European session on Wednesday.
The pair benefited from the RBNZ’s refrain to provide any fresh dovish signals and recent improvement in global risk sentiments.
75.90 and 76.30 seem immediate resistances for the pair with 75.00 and 74.45 likely being nearby supports.

Anil Panchal FXStreet

The NZD/JPY pair rallied more than 150 pips to 75.80 after the RBNZ decision on early Wednesday. The Reserve Bank of New Zealand (RBNZ) pleased Kiwi bulls as it refrained to offer any fresh dovish signals either for future monetary policy change or headline economic indicators. Adding to this, RBNZ Governor Adrian Orr’s comments signaling a downplay for the rate cut provided extra strength to the New Zealand Dollar, also known as Kiwi.

NZD/JPY surged to a week’s high around 75.80 heading towards European session as the RBNZ disappointed overall market consensus of a dovish statement together with no rate change. Even if the RBNZ followed no rate change forecast, it failed to provide any new signals that can indicate either policy change or the economic weakness. On the contrary, the central bank praised employment scenario.

Governor Adrian Orr also backed the central bank’s outlook and talked down chances of a rate-cut in near future when asked at a press conference following interest rate announcement.
With this, Kiwi Bulls assume greater strength and cried for buying the New Zealand Dollar.

On the contrary, recent improvements in the risk sentiment also weakens the JPY’s safe-haven demand. Notable among them was yesterday’s comments from the US President Donald Trump favoring absence of another government shutdown and a trade deal with China.

Given the upbeat market response from the RBNZ result, investors will now look forward to global risk events like US-China trade deal, US government shutdown and Brexit to get fresh impulse of trading.

NZD/JPY Technical Analysis

The pair needs to surpass early-month high around 75.90 in order to aim for 76.30 and the 76.80 resistance levels. During the pair’s extended rise past-76.80, buyers can aim for 77.30.

If at all the pair fall short of providing a daily close beyond 75.90, chances of its pullback to 75.00 and 74.45 can’t be denied.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.