Currency Analyst since 2010

The RBNZ left policy unchanged

EUR/USD edged down touching 1.0493, but then found some support at 1.0500. Demand for the euro fell after the European Central Bank started quantitative easing (QE) on Monday driving down the euro zone’s bond yields. In addition, Greece has made little progress in negotiations with its creditors about the terms of bailout.

GBP/USD corrected up to 1.4955. The Bank of England’s Governor Mark Carney will speak at 12:45 GMT. USD/JPY remains between resistance at 122.00 and support at 120.80. AUD/USD rose to 0.7650 after a moderate rise in Australian employment.

NZD/USD spiked down to support at 0.7187, but then formed a ‘hammer’ candle closing at 0.7277 on Wednesday. During the Asian session on Thursday kiwi pushed up to 0.7350. New Zealand’s dollar got a boost as the Reserve Bank of New Zealand left its policy unchanged with the benchmark rate at 3.5%, while some of the market players expected a rate cut.

Investors are awaiting today’s data from the US – retail sales & unemployment claims due at 12:30 GMT. Good figures will strengthen the odds of an earlier Fed’s rate hike.

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