Why did the chicken cross the road? - Forex News by FX Leaders

Why did the chicken cross the road?

Posted Friday, July 8, 2016 by
Skerdian Meta • 1 min read

If you wondering which one is the chicken, we´re referring to the New Zealand Dollar as the chicken. Yesterday was mainly a risk aversion day in forex and the commodity Dollars together with the Euro ended the day down against the US Dollar and the Yen. But, the NZD was pretty resilient. We were wondering where did all this love for the NZD come from all of a sudden.

There was no economic data on the calendar coming from New Zealand. There was no international dairy products news to which the NZD is very sensitive and there was no news coming from China, because if there was the AUD would be the prime beneficiary.

Well, we now know that it was a non-official comment/statement from the RBNZ (Royal Bank of New Zealand) which implied that they were not going to cut the interest rates any further, in fact, they could start increasing them to cool off the housing sector. The forex market was expecting an interest rate cut next month but now everything has reversed, that´s why the NZD has surged in the last two days. This is a game changer for the Kiwi. 

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of