NZ OCR unchanged at 3.5 percent

NZD and AUD are going down due to expectation of rate cut but when rates are unchanged they are going down further. Just by verbal intervention. Totally difficult to understand.

For me too!

any take on NZDCAD ?

agreed. Definitely a matter of time I think before we see AUD NZD central banks cut rates. Despite what Fed said earlier, I disagree that the overall world economy is getting stronger.

Well the statement clearly stated that NZD is presently highly over valued as compared to the fundamentals. Which probably means there might be a rate cut going forward. And that's what traders react to.

"While the New Zealand dollar has eased recently, we believe the exchange rate remains unjustified in terms of current economic conditions, particularly export prices, and unsustainable in terms of New Zealand’s long-term economic fundamentals. We expect to see a further significant depreciation " . Well this is a sign of intervention

They are only verbally intervene. Never Act

Only question I have for Aussie is...will it break Sunday's low of .7850 or form a double bottom?

NZD and AUD are now following S&P strictly with the correlation close 100% in the last hour.....

The Fed talk brought nothing new and it will sink in the coming days that they are just buying time. No rate cut would be justified in the near future, as some in IMF also voiced today.

NZD verbal intervention is sometimes followed with the covert real intervention but limited time effect in the longer term sense.

Fundamentally NZD is fight with the pro-cut indications "... the reduced dairy payout, the risk of drought, and the high exchange rate..."
and the pro-raise indications "...Annual economic growth in New Zealand is above 3 percent, supported by rising construction activity and household incomes. The housing market is showing signs of picking up, particularly in Auckland.... and ... The most direct and immediate effects are through fuel prices, with the price of regular petrol falling from a national average of $2.23 in mid-2014 to $1.73 currently. This will increase households’ purchasing power and lower the cost of doing business..."

From the Technical point NZDUJSD is just about 0.7336 which is 61.8% of retracement from its low from March 2009 (0.4912) to its high frin July 2014 (0.8834).

Interesting. Last time NZD hiked the rate, and it fell. This time rate unchanged and it fell.

Impossible (cannot believe the drop) and worry for trade balance.
(I supposed it would continue to go up from last night.)

RBNZ must have sold hundreds of millions of NZD in forex market covertly! Despite maintaining the rate and decrease in trade deficit, it favors going down. It does not make sense to me.

LOL I like you. You're funny.

My question was just answered! Glad I was short Aussie.

again

Hope you're making lots of pips mate!