"In view of the lack of price pressure in the economy and since the NZD is still overvalued on several measures, we expect a dovish policy statement from the RBNZ this evening and look for a softer tone in NZD/USD to re-emerge in the coming weeks. We forecast a move towards 0.61 on a 12 mth view."- Rabobank (based on
The US Dollar suffered serious losses against its Canadian counterpart on Wednesday, amid a sharp increase in oil prices and the BoC leaving its key rate unchanged.
The AUD/USD currency pair not only erased Tuesday's losses yesterday, but even reached a fresh eight-month high at 0.7528.
The Euro was bought off yesterday in anticipation of the ECB's rate bid decision today and, consequently, completely recovered from the intraday lows.
The Greenback is appreciating on the back of weaker other currencies, while actual and expected central banks' expansionary policies are raising downside risks for gold.
The Greenback overperformed on Wednesday, as somewhat faded risk aversion pushed the USD/JPY higher.
The British currency remained almost completely unchanged against the US Dollar on Wednesday in the wake of mixed fundamental data results.
The bears performed strongly until the beginning of US session on Wednesday when EUR/USD managed to erode losses and bounce back to 1.10.
As a commodity currency, the New Zealand Dollar also suffered from Chinese Trade Balance figures on Tuesday, slumping more than 50 pips against the Buck.
The Australian currency experienced a small setback on Tuesday, as weak Chinese fundamental data sent the AUD/USD pair towards the support area in face of the monthly R2.
On Tuesday the US Dollar took the upper hand and surged against its Canadian counterpart, amid expectations of a dovish BoC statement the next day.
Poor Chinese fundamental data sparked demand for safe haven assets, such as the Japanese Yen, which resulted in the given pair's 92-pip drop yesterday.
Ahead of the meeting of the European Central Bank the Dollar is broadly gaining ground across the board.
On Tuesday the risk-off sentiment sparked demand for the safe haven Yen, causing the USD/JPY currency pair to reach the second support level, namely the weekly S1.
As was anticipated, the Sterling weakened against the US Dollar on Tuesday, amid BoE Governor's remarks.
Daily technical indicators assume the EUR/USD currency pair will come under a heavy selling pressure on Wednesday when the ECB's two-day meeting starts.
The New Zealand Dollar ended the day in the green zone against the US Dollar, as a rebound in oil prices strengthened the commodity currency.
On Monday the support cluster around 1.3305 failed to provide sufficient support, causing the USD/CAD not only to edge below the descending channel's lower border, but also to close under the 200-day SMA.
The Aussie set off with a 65-pip rally, mainly due to an increase in iron ore prices yesterday.
The EUR/JPY currency pair was unable to breach the immediate support, namely the weekly PP, and, as a result, barely returned under the 125.00 level.
Monday has been a broadly calm day for global markets and the safe-haven metal booked somewhat muted volatility readings.
Once again the Greenback made a U-turn after having edged closer towards the 114.00 level, resulting in a 50-pip slump over the day.
The British Pound surprised with its performance for another day, as demand at the monthly PP was sufficient to cause the Cable to recover from its intraday low and edge 45 pips higher.
EUR/USD advanced for a third trading day in a row on Monday and neared the monthly pivot point at 1.1021, which is succeeded by the 200-day SMA at 1.1045.