Hot Topics:
- NZD – RBNZ monetary policy meeting maintains the interest rate at 1.75 percent.
- USOIL – Plunges after inventories data release.
- GOLD – Falls driven by the dollar appreciation.
Main currencies daily performance.
NZD – RBNZ monetary policy meeting maintains the interest rate at 1.75 percent.
The RBNZ Monetary Policy Decision has decided to maintain the interest rate at 1.75%. In their statement, they say: “Equity markets have been strong, although volatility has increased recently”. Concerning the accommodative policy, RBNZ adds “Monetary policy remains easy, but is gradually becoming less stimulatory”. The members see “The growth profile is weaker in the near term, but stronger in the medium term”. Inflation in December “was lower than expected at 1.6%, due to weakness in manufactured goods”. The RBNZ statement ends signalling that “Monetary policy will remain accommodative for a considerable period, but policy may need to adjust accordingly”.
Technically the Kiwi maintains the bearish bias, as has been our central vision. We still expect continuity in the falls to the area of 0.71064 and 0.70634, an area from where we could begin to be alerted to evaluate potential bullish positions. For the moment we stay out of this pair.
NZD-USD hourly Chart ( Click image to enlarge)
USOIL – Plunges after inventories data release.
After the publication of the crude oil inventory data (1.895M actual vs estimated 3.189M), crude oil began to accelerate the bearish movement that has been developing since last week where we see a pattern of bullish failure. This fall could be in 5 waves; our conservative objective is at $59.75.
OIL WTI hourly Chart ( Click image to enlarge)
GOLD – Falls driven by the dollar appreciation.
Given the strength of the dollar, we expect more falls in gold. The zone that we propose as a control zone is in the bullish guideline which could act as a dynamic support level at $1251.26. We will be observing the development of the price movements to evaluate long-term bullish incorporations.
– First key support $1301.27.
– Second key support $1285.98.
Gold Daily Chart ( Click image to enlarge)
