RBNZ keeps interest rates on hold

November 9, 2017

By Orbex Blog

Daily Forex Market Preview, 9/11/2017

The Reserve Bank of New Zealand left the overnight cash rate unchanged at its monetary policy meeting. The central bank acknowledged that the outlook for the economy was somewhat improving. The Kiwi dollar was seen posting some modest gains on the back of the interest rate decision.

The US dollar was seen trading mixed as rumors of possible tax reform delays by President Trump hit the sentiment. EURUSD was seen posting some modest gains although the GBPUSD weakened. The British pound closed lower as ongoing uncertainty in the PM May’s cabinet and the Brexit deal saw investors selling the pound sterling.

Looking ahead, the economic calendar today will see the SNB Chairman Thomas Jordan speaking. On the economic front, the ECB will be releasing its economic bulletin, and the EU commission will be releasing its economic forecasts.

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EURUSD intraday analysis

EURUSD (1.1591): The EURUSD continues to trade range bound following the bounce off the previous support low at 1.1573. Price action remains subdued overall and this could suggest a balanced bias. The common currency continues to maintain the range within the lows of 1.1573 and resistance level of 1.1674. Multiple attempts to break past the 1.1600 handle failed to keep price action muted as a result. Today’s EU forecasts could, however, see some volatility coming into the currency pair.

USDJPY intraday analysis

USDJPY (113.98): The USDJPY fell to a 5-day low yesterday, but price action managed to pullback subsequently. The currency pair continues to consolidate near the resistance level of 114.05 – 114.31 level. The rising wedge pattern remains in pay on the daily chart. On the 4-hour chart, USDJPY was seen breaking the minor rising trend line with today’s price action retracing the losses. As long as the trend line acts as dynamic support, USDJPY could be seen pushing lower towards the 113.00 handle.

XAUUSD intraday analysis

XAUUSD (1281.86): Gold prices edged higher yesterday as price hit a 3-week high near 1285 region. Price action, however, quickly retreated from these levels. However, the breakout of the trend line and the test of resistance could suggest a short-term consolidation with the potential upside breakout in price. This scenario would potentially turn bullish for gold prices which could see extending the gains towards the next main resistance level of 1320 region. To the downside, price action is limited to testing the previous lows of 1262 for now.