PU Prime App

Exclusive deals on mobile

  • Market Insights  >  Trade Of The Day

30 October 2024,02:09

Trade Of The Day

Kiwi Remains Weak On Dovish Mood Around RBNZ

30 October 2024, 02:09

Share on:
FacebookLinkedInTwitterShare

Fundamental Analysis

* Kiwi Drift: The New Zealand Dollar remains under pressure, continuing its downward trend due to the dovish outlook surrounding the Reserve Bank of New Zealand (RBNZ). The RBNZ is anticipated to implement an additional 50-basis-point rate cut at its policy meeting of the year in November, with markets even factoring in the potential for a 75-basis-point reduction. Weak economic fundamentals in New Zealand, such as soft labor market indicators, bolster expectations for an aggressive rate-cutting strategy from the RBNZ. Additionally, demand for the Kiwi also waned in the face of a stronger U.S. dollar, backed by favorable U.S. economic data that might lead the Federal Reserve to enact a moderate rate cut in November. According to the CME FedWatch Tool, there is a 95.8% likelihood of a 25-basis-point cut from the Fed, with minimal expectations for a larger 50-basis-point move.

Technical Analysis

* Technical Breakout: Recent bearish market structure breakout along with persistent bearish trend suggest the pair to likely further extend its downside.

* Resistance and Support: If the bearish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 0.58750. Conversely, a potential reversal is also to be expected and the price could head back towards 0.61000 after it breach back above the level 0.59850.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Looking ahead, investors will focus on key upcoming U.S. data, including the ADP Non-Farm Employment Change, GDP, Core PCE Price Index, and Non-Farm Payroll, given the lack of significant data releases from New Zealand this week

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US and New Zealand data, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

Grab the trading opportunity and dive into the action risk-free with a free demo account. It is the perfect way to hone your skills and explore the exciting world of trading!

Open Your Free Demo Account And Start Trading Risk-Free

Join Now



Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.

Start trading with an edge today

Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.

  • Start trading with deposits as low as $50 on our standard accounts.
  • Get access to 24/7 support.
  • Access hundreds of instruments, free educational tools, and some of the best promotions around.
Join Now

Latest Posts

Fast And Easy Account Opening

Create Live Account
  • 1

    Register

    Sign up for a PU Prime Live Account with our hassle-free process.

  • 2

    Fund

    Effortlessly fund your account with a wide range of channels and accepted currencies.

  • 3

    Start Trading

    Access hundreds of instruments under market-leading trading conditions.

Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.

Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.

By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.

Thank You for Your Acknowledgement!

Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.

Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.

Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.

Thank You for Your Acknowledgement!