NZDUSD breaks away from a diamond pattern

A new uptrend in play after RBNZ rate announcement: Chart

New Zealand

The US Dollar was bullish against most of its major pairs on Wednesday with the exception of the NZD. On the US economic data front, the Mortgage Bankers Association's Mortgage Applications fell 0.5% for the week ending November 6th, compared to +3.8% in the week before. 

On Thursday, the Consumer Price Index for October is expected to rise 0.1% on month, compared to +0.2% in September. Initial Jobless Claims for the week ending November 7th are expected to fall to 734K, from 751K in the prior week. Continuing Claims for the week ending October 31st are anticipated to decline to 6,900K, from 7,285K a week earlier. Finally, the Monthly Budget Deficit for October is expected to increase to 275.0 billion dollars on month, from 124.6 billion dollars in September.        

The Euro was bearish against most of its major pairs with the exception of the GBP. In Europe, no major economic data was released. 

The Australian dollar was bullish against most of its major pairs with the exception of the NZD and USD. 

New Zealand

maintained its benchmark interest rate at 0.25% and delivered a fresh round of monetary stimulus. The RBNZ projected a more bullish view regarding the country's economic recovery. Sub-zero rates are no longer a large fear which helped bid up the NZD/USD in Wednesday's trading. On a technical perspective, the pair broke above a diamond continuation pattern; a new uptrend is in play. As long as 0.6675 can hold as support, look towards a test of 0.7065 resistance and the uptrend to continue. 

Source: GAIN Capital, TradingView

More from Forex


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.