by SignalFactory · February 19, 2020 | 06:55:24 UTC
NZD/USD
is currently trading at 0.6386 and is down 0.78% on the day so far, traveling
from a high of 0.6441 to a low of 0.6381. Despite the RBNZ’s hawkish
projections, the bird continues to bleed out from the post-meeting highs. there
is not a great deal of news out there to be a catalyst for the downside other
than GDT Price Index down 2.9% and Moody’s cuts China forecast to 5.2% for
2020.
Whole
milk powder fell 2.6%
New
Zealand’s key export product, whole milk powder, fell 2.6% and was matching
yesterday’s futures market predictions of a 3% fall. Skimmed milk powder prices
fell 2.6%, butter fell 3.9% (despite reduced volume for this auction), and
anhydrous milk fats fell 5.5%, while cheddar cheese rose 5.3%. “Last
night’s results are unsurprising given the continuing uncertainty regarding the
Coronavirus outbreak, the previous GDT auction on 4 February also likely
affected by such,” analysts at Westpac explained, adding that “the
steps that China has taken to contain the outbreak – such as limiting the
movements of people – have kept many factories closed, which has meant less
demand for their inputs, including milk powder. North Asian demand at last
night’s auction was lower than usual, but only slightly so.”
Markets
typically softened overall but this was largely in part to the news whereby
Apple announced it would fall short of its Q1 sales targets because of slower
iPhone production and weaker demand in China.
In
other news, which is more positive for risk appetite, China announced further
cuts to tariffs on US products including agricultural goods such as pork, beef
and soybeans and crude oil and natural gas. “The tariff cuts are in
addition to the cuts already announced as part of the Phase 1 deal but are
likely to be needed in order to achieve the USD200 billion of imports committed
to as part of the Phase 1 deal,” analysts at ANZ Bank noted.
RBNZ
sentiment support for kiwi fading
For
now, the RBNZ policy looks set to remain on hold. However, if evidence mounts
that the impact from coronavirus is set to be significant, the RBNZ will likely
be forced to react. Markets are starting to trade that assumption, although
putting aside any risks stemming from the coronavirus, there would indeed
appear to be the reason for optimism in New Zealand.
“RBNZ this morning discussed the possibility that there
could be a positive impetus on wage inflation and on CPI inflation.
Policymakers also noted the effects of recent minimum wage increases, pay
equity settlements and large collective agreements in the public sector,”
analysts at Rabobank argued. However, it is not a done deal that the RBNZ will
remain on hold and the coronavirus impact in tourism could be a highly damaging
outcome for the economy. Tourism is a significant export for New Zealand and in
recent years, Chinese visitors have made a key contributor to overall revenue.
NZD/USD
LONG (Buy)
ENTER
AT: 0.6388
T.P:
0.6403
S.L:
0.6367
FROM:
7:51 GMT+2
TILL:
11:51 GMT+2
Pending order should be placed as a signal arrives (at “From” time). “Till” time is intended to forced exit. Any open trade is “Filled” when “Till” time is about to be reached. Any pending order is “Cancelled” when the “Till” time is about to be reached. Use trailing-stop to maximize profit.
All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user.
This website and all information is intended for educational purposes only and does not give financial advice. Signal Factory is not a service to provide legal and financial advice; any information provided here is only the personal opinion of the author (not advice or financial advice in any sense, and in the sense of any act, ordinance or law of any country) and must not be used for financial activities. Signal Factory does not offer, operate or provide financial, brokerage, commercial or investment services and is not a financial advisor. Rather, Signal Factory is an educational site and a platform for exchanging Forex information. Whenever information is disclosed, whether express or implied, about profit or revenue, it is not a guarantee. No method or trading system ensures that it will generate a profit, so always remember that trade can lead to a loss. Trading responsibility, whether resulting in profits or losses, is yours and you must agree not to hold Signal Factory or other information providers that are responsible in any way whatsoever. The use of the system means that the user accepts Disclaimer and Terms of Use.
Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered.
While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all.
All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information.
All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way.
The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions.
Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company.
Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results.
Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.