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.
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