Reserve Bank of New Zealand Supported Kiwi

Market Reviews

Kiwi has slightly reinforced since the RBNZ hinted on removal from the loose policy. The rate is held at 1.75%. Yen remains strong. WTI crude oil declined to 42.05. 30 year yield as well as DOW and S&P 500 weakened (Dow dropped -0.27% and S&P 500 lost -0.06%). Loonie is under pressure thanks to oil’s movement. Aussie/Kiwi broke the minimum of 1.0389 and hit 1.0379. Then, it has slightly recommenced. The decline from 1.1017 is extending. Larger fall should head towards the support zone of 1.0234/0323. If 1.0549 resistance is present, bearishness stays.

Today, leaders of European Union are going to meet. Main points of discussions will be relationship between France and Germany and Theresa May’s EC Summit, where she should talk about Brexit and borders Ireland and Northern Ireland. Pound has mildly increased. Sterling/Swiss Franc cross is holding under a short term resistance at 1.2537. The correction from 1.1635 should have ended at 1.3067. Breach of 1.2213 will prolong the bigger downtrend through the minimum of 1.1635.

Swiss will publish trade balance. Britain will announce CBI trends total orders. Canada will show retail sales and the United States will publish jobless claims, house price index and leading indicators.