NZD/USD breaks out of the monthly opening range as the coalition government under Prime Minister Jacinda Ardern appoints Adrian Orr, the chief executive of the New Zealand Superannuation Fund, to lead the Reserve Bank of New Zealand (RBNZ) starting in March 2018.
The upcoming transition appears to have heightened the appeal of the New Zealand dollar as Mr. Orr, who also served as Deputy Governor and Head of Financial Stability at the RBNZ from 2003 to 2007, is expected to take a less-dovish approach in managing monetary policy.
In turn, NZD/USD may stage a more meaningful rebound going into the end of the year, but keep in mind, the push to review and revise the RBNZ’s mandate is likely to produce headwinds for the New Zealand dollar, with acting Governor Spencer Grant largely anticipate to preserve the record-low cash rate at the next interest rate decision on February 8.
With that said, NZD/USD may continue to threaten the near-term range ahead of the Federal Open Market Committee (FOMC) interest rate decision on December 13, but the broader outlook remains tilted to the downside as both price and the Relative Strength Index (RSI) preserve the bearish formations carried over from the summer months. Varying market conditions require alternative strategies as trends change. Want a better understanding of the different approaches for trading?
The upcoming transition appears to have heightened the appeal of the New Zealand dollar as Mr. Orr, who also served as Deputy Governor and Head of Financial Stability at the RBNZ from 2003 to 2007, is expected to take a less-dovish approach in managing monetary policy.
In turn, NZD/USD may stage a more meaningful rebound going into the end of the year, but keep in mind, the push to review and revise the RBNZ’s mandate is likely to produce headwinds for the New Zealand dollar, with acting Governor Spencer Grant largely anticipate to preserve the record-low cash rate at the next interest rate decision on February 8.
With that said, NZD/USD may continue to threaten the near-term range ahead of the Federal Open Market Committee (FOMC) interest rate decision on December 13, but the broader outlook remains tilted to the downside as both price and the Relative Strength Index (RSI) preserve the bearish formations carried over from the summer months. Varying market conditions require alternative strategies as trends change. Want a better understanding of the different approaches for trading?
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