What happened to the Kiwi last night?

Posted Tuesday, August 23, 2016 by
Skerdian Meta • 1 min read

Last night or yesterday depending on where you live, the NZD made a 60 pip jump out of nowhere. It was a surprise to me because I was on the road all day yesterday and I had checked the economic calendar for the day, including only European daylight events. Anyway, as I was getting ready to get to bed, the Kiwi made a 60 pip jump, which seemed like a huge move after a relatively quiet day.  

The market sentiment has changed towards the NZD 

I was a bit surprised because as I said, I had set my economic calendar to include events occurring during the European daylight hours only. As I changed the calendar I saw that the RBNZ (Royal Bank of New Zealand) governor Wheeler was holding a press conference. Reading the first comments, I immediately realised the reason for this move; Wheeler had disappointed the market expectations once more.

The comment which stood out was that the RBNZ and the economy of New Zealand don´t need rapid monetary easing. That´s true according to me, but the recent strength of the NZD might ruin the plans. That comment was all that the forex market needed to pick a side. If you know how to read the price action, you´d know that the situation has changed for the Kiwi, from bearish to bullish. The forex market is just waiting for a reason to make the next move higher in NZD forex pairs.   

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments