NZD/USD Bulls Rally and Eurozone Jitters
Published on: 09/27/19 12:35 PM
The fourth week of September 2019 witnessed an FX Market dominated by the NZD/USD pair, and a resurgent USD both hogging podium status. On the other hand, the Eurozone underperformed and remained volatile with bitter Brexit unrelenting, and ECB wrangles in negative spotlight. Forex Broker comparison service FXBrokerFeed brings you news, and trends in the FX Broker Market, featuring NZD/USD boisterous rally, and the Eurozone at a crossroads.
NZD/USD Bullish Trend
The pair was the week’s star performer after overly dovish remarks from RBNZ governor Adrian Orr during a monetary outlook speech (in rbnz.govt.nz) to the NZX Issuer Forum in Auckland.
The currency pair
added 20 pips to hit a season high of 0.64% on Thursday, which signaled a bullish trend that resonated with a rising US 10-year treasury yield, and near parallel growth projections.
The RBNZ maintained August interest rate cap that had come as a market shocker after cutting rates by a whopping 50 basis points. The pair also responded well to rising Chinese economic growth momentum boosted further by PBOC plans of pumping 900 billion yuan into the economy.
Additional lift for the pair came from thawing US/China tariffs sentiment with prospects for a Washington meeting confirmed for October by Chinese Commerce Ministry.
The Eurozone is still in the woods with EUR/USD
trading at a yearly low of 1.0922 as brisk buying of the USD on the back of rising treasury yields ganged up to keep most other pairs on a downtrend.
Also, lackluster PMI data pointed to a recessionary trend while hanging auto tariffs threat by the US continued to impact negative sentiment that added to economic woes for the region. On the other hand, the Brexit conundrum, and wrangling within ECB resulting in resignation of a board member persisted to cast shadow on any significant gains.
However, bright forward-outlook pronouncements by incoming ECB Governor Christine Lagarde indicating “massive stimulus for the sluggish Eurozone” is cause for optimism in the mid-term.
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