On September 29, the New Zealand dollar fell against the greenback after data from the RBNZ held on August intervention in the amount of 521 million New Zealand dollars. Intervention volume was the highest since July 2007 For comparison, in July 2014 the RBNZ sold about 2 million New Zealand dollars.
RBNZ has repeatedly warned that the rate of the national currency is very high by historical standards. As a result, the RBNZ words were backed up by case.
For more information about the RBNZ intervention and its impact on the dollar noted the experts of the Forex Broker Company FIBO Group.
NZD weakened to a 15-month low against the dollar on the expectation of new interventions RBNZ.
It is likely that the strengthening of the dollar against the New Zealander after RBNZ data followed amid expectations of further intervention in repeated statements of the Bank and the government of unnecessarily and unreasonably high rate of New Zealanders.
According to the current Prime Minister of New Zealand and the former currency trader, a New Zealander acquitted course near 0.6500 dollar. The New Zealander-dollar reached an intraday low around 0.7709.
From a fundamental point of view of strengthening Kiwi linked to the strength of the economy. The pace of economic growth in New Zealand ahead of the growth in most developed countries after the financial crisis, and GDP growth reached a maximum 10-year period.
Net sales of 521 million New Zealand dollars by the Reserve Bank of New Zealand in August confirms that the central bank is ready to intervene at times when the New Zealand dollar seems unjustified, and when the market favors a successful intervention. It is likely that in the coming months will be made further sales. The situation in the market was appropriate, given that investor sentiment turned sharply against the commodity currencies and in favor of the dollar. Statement submitted by the RBNZ last Thursday, signaling that the bank still believes the New Zealand dollar is unreasonably high even after the recently observed its decline.
What is the outlook of NZD-Dollar on Forex?
On the representation of experts of Masterforex-V World Academy http://www.masterforex-v.com/ hourly chart of the currency pair New Zealander / dollar seen a sharp decline in the New Zealander and the strengthening of the dollar after a report on the intervention of the RBNZ in August.
The direction of moving averages 21, 55 and 233 orders coincides is down. Pullback of NZD occurs on a small spread, which may indicate the presence of active sellers on the pair. Given the signals from the RBNZ is likely that New Zealanders continue weakening. Break low around 0.7709 will weaken the New Zealander in a minimum area of 30 June 2013 0.7682. Further reduction of the Kiwi may continue in the area of 0.7600 on the red arrow.
Alternative case scenario could be a medium-term growth in the correction of the dollar against the New Zealanders in the area of the resistance level 0.7868. Breakdown of resistance may promote the growth of a couple in the area of 0.7957 on the orange arrow.On 29 September, the dollar NZD> New Zealand dollar weakened sharply against the dollar by 1.44% and reached a minimum value of 15 months after the data of the Reserve Bank of New Zealand (RBNZ) to sell a significant amount of the New Zealand dollar in August.
