Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

NZD/USD extended gains from the prior trading day and touched a fresh 13 1/2-month high on Wednesday, after Reserve Bank of New Zealand Governor Adrian Orr said the central bank’s actions had been effective in broadly reducing interest rates.

“We have been effective in lowering interest rates across the board, and ensuring there is plentiful liquidity in the financial system,” RBNZ Governor said in a speech at the Victoria University School of Government and Policy Studies earlier on Wednesday.

Orr also said the central bank was ready to use additional monetary policy tools if required, including negative interest rates, direct lending to banks or additional quantitative easing.

Meanwhile, the US Dollar rebounded from yesterday’s 28-month low against six major peers, after the latest data from the Institute for Supply Management showed US manufacturing activity had expanded at the sharpest rate since November 2018 in August, as new orders rose to their highest level since December 2017.

Additional support for the dollar came after White House chief of staff Mark Meadows said that Senate Republicans would likely bring up a targeted coronavirus relief bill during the upcoming week.

As of 6:52 GMT on Wednesday NZD/USD was edging up 0.18% to trade at 0.6769, after earlier touching an intraday high at 0.6789, or a level not seen since July 19th 2019 (0.6791). The major pair rose 1.63% in August, while marking its fifth straight month of gains.

In terms of economic calendar, a report by Automatic Data Processing Inc at 12:15 GMT may show employers in the US non-farm private sector hired 900,000 employees in August, as expected by analysts. In July, private businesses hired only 167,000 workers, as COVID-19 resurgence forced several states to scale back or pause their reopening plans and some workers were sent back to unemployment.

At 14:00 GMT Federal Reserve President for New York John Williams is to take part in a conversation titled “New York Fed Presidents on COVID-19”, hosted by the Bretton Woods Committee.

At 16:00 GMT Federal Reserve President for Cleveland Loretta Mester is expected to speak on the US economic outlook and monetary policy before the 17th Annual NABE Foundation Economic Measurement Seminar via webcast.

And at 18:00 GMT Fed President for Minneapolis Neel Kashkari is to take part in a virtual panel with a topic “Where are the Black Financial Regulators?”, hosted by the Brookings Institution.

Bond Yield Spread

The spread between 1-year New Zealand and 1-year US bond yields, which reflects the flow of funds in a short term, equaled 7.7 basis points (0.077%) as of 6:15 GMT on Wednesday, up from 7.4 basis points on September 1st.

Daily Pivot Levels (traditional method of calculation)

Central Pivot – 0.6754
R1 – 0.6782
R2 – 0.6806
R3 – 0.6834
R4 – 0.6861

S1 – 0.6730
S2 – 0.6702
S3 – 0.6677
S4 – 0.6653

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Forex Market: EUR/AUD trading forecast for MondayForex Market: EUR/AUD trading forecast for Monday Friday’s trade saw EUR/AUD within the range of 1.4387-1.4568. The daily low has also been the lowest level since November 24th 2014. The pair closed at 1.4433, losing 0.59% on a daily basis. The pair plunged 2.72% during the whole week, which […]
  • Tencent Holdings Ltd’s share price down, offers dollar-denominated bonds in two tranchesTencent Holdings Ltd’s share price down, offers dollar-denominated bonds in two tranches Tencent Holdings Ltd, the largest Internet company in Asia, intends to sell dollar-denominated bonds in two tranches after the company has recently launched a program, which allows it to raise up to $5 billion in bonds over the next year. […]
  • Ford shares close lower on Wednesday, auto maker to exit Russia’s passenger vehicle marketFord shares close lower on Wednesday, auto maker to exit Russia’s passenger vehicle market Ford Motor Company (F) said on Wednesday that its joint venture with Sollers in Russia planned to shut down two assembly factories and one engine plant in the country, while the US manufacturer would exit local passenger vehicle […]
  • Forex Market: USD/CAD daily trading outlookForex Market: USD/CAD daily trading outlook Friday’s trade saw USD/CAD within the range of 1.2830-1.2958. The pair closed at 1.2941, going up 0.73% on a daily basis. It has been the 47th gain in the past 94 trading days and also the steepest one since May 4th, when the pair surged […]
  • Oil weekly recap, March 17 – March 21Oil weekly recap, March 17 – March 21 West Texas Intermediate crude rose on Friday and ended two straight weeks of losses as renewed tension between Russia and the West raised oils risk premium. Ample US crude supplies and a strong dollar however checked gains. A more positive US […]
  • Samsung announces slowest profit growth since 2011Samsung announces slowest profit growth since 2011 The biggest smartphones manufacturer in the world – Samsung Electronics Co. - announced its slowest profit growth since 2011. At the same time, high-end customers are being tempted by new iPhones of Apple Inc.Samsung Electronics also […]