New Zealand Dollar: NZD/USD (NZD=X) traders are also positioning themselves ahead of the RBNZ interest rate decision
The New Zealand Dollar is trading higher on Tuesday, but pulling back from its high hit earlier in the session, following the release of stronger-than-expected employment numbers. Despite the solid data, traders don’t think the news will prevent the Reserve Bank of New Zealand from cutting its official cash rate on Wednesday.
The report showed the jobless rate fell to 3.9 percent in the June quarter. That was down from 4.2 percent in the March quarter and well below economists’ expectations of a lift to 4.3 percent.
The strong jobs numbers justified the Kiwi’s bounce, but any strength is likely to be short-lived because of the escalating tensions between the United States and China. Furthermore, the RBNZ is widely expected to cut its benchmark interest rate 25-basis points tomorrow.
We’re just seeing a reaction to the jobs report early in the session. Putting a cap on the rally are U.S.-China concerns. Traders are also positioning themselves ahead of the RBNZ interest rate decision.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 0.66.
The projected lower bound is: 0.64.
The projected closing price is: 0.65.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 28 white candles and 21 black candles for a net of 7 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 30.5851. This is not an overbought or oversold reading. The last signal was a buy 2 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 33.41. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 54 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -91. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 9 period(s) ago.
Rex Takasugi – TD Profile
FOREX NZD= closed up 0.000 at 0.653. Volume was 96% below average (consolidating) and Bollinger Bands were 60% wider than normal.
Open High Low Close Volume___
0.652 0.653 0.652 0.653 1,256
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.66 0.66 0.67
Volatility: 5 9 10
Volume: 32,548 36,140 42,214
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX NZD= is currently 2.9% below its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of NZD= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on NZD= and have had this outlook for the last 6 periods.