- 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.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in daily range slightly below 1.0900
EUR/USD continues to move up and down in a narrow band slightly below 1.0900 in the second half of the day on Monday. The modest improvement seen in risk mood makes it difficult for the US Dollar to find demand and helps the pair stay in range.
GBP/USD treads water above 1.2900 amid risk recovery
GBP/USD is keeping its range play intact above 1.2900 in the American session on Monday. The positive shift seen in risk sentiment doesn't allow the US Dollar to gather strength and helps the pair hold its ground ahead of this week's key data releases.
Gold struggles to hold above $2,400
Gold loses its traction and trades in negative territory below $2,400 after suffering large losses in the second half of the previous week. The benchmark 10-year US Treasury bond yield holds above 4.2% and risk flows return to markets, not allowing XAU/USD to rebound.
Solana could cross $200 if these three conditions are met
Solana corrects lower at around $180 and halts its rally towards the psychologically important $200 level early on Monday. The Ethereum competitor has noted a consistent increase in the number of active and new addresses in its network throughout July.
Election volatility and tech earnings take centre stage
/stock-market-graph-gm532464153-55981218_XtraSmall.jpg)
The US Dollar managed to end the week higher as Trump Trades ensued. Safe-havens CHF and JPY were also higher while activity currencies such as NOK and NZD underperformed.