Morning Preview: Hawkish RBNZ Leave Rates on Hold
Rowan Crosby • 1 min read
The big headline to kick of the trading day is certainly out of New Zealand as the RBNZ has decided to leave rates on hold. That wasn’t really a surprise as we suggested that might be the case. However, it appears the talk coming out is a little hawkish and certainly positive on inflation.
That has spiked the NZD/USD a little higher and has pushed up to the 0.6970, which is right around the area I identified yesterday as a shorting opportunity.
Elsewhere the other majors didn’t move all that much. The Euro has been testing the lows but as yet hasn’t seen the large downside that I expect will be coming. Gold rallied and that offered a nice selling opportunity.
The USD Index was a little up and down. Overall we fell away from the overhead resistance level that we have been testing. However, it looks like we are getting more bullish and it even looks like bullish triangle pattern. That means we could well break out to the upside.
US Dollar Index (DXY) – 240 min Chart.
Economic Data of Note
The calendar remains bare this week, with only UK Manufacturing Production on Friday as the next top-tier event.