Today’s Key Market Drivers – 10th November 2017


Kiwi Dollar pulls back, post the initial RBNZ rally.

The Kiwi Dollar as expected has pulled back after initially rallying, post the RBNZ monthly statement on Thursday. The New Zealand Central Bank confirmed that it would be leaving the official cash rate on hold for the foreseeable future and one reason traders bought the currency in the short term could have been because they expected the RBNZ to be more bearish in their comments. I continue to expect the NZD currency to lose ground over coming months as there simply is no reason for investment banks to overload on the Kiwi or Aussie Dollars. Interest rates in the northern hemisphere are on the rise and will continue to rise whilst the RBA and RBNZ are likely on hold for the next 6 to 9 months at least.

The US Dollar has lost momentum after Trump’s tax plans struggle to get support in the US Senate. The US Dow Jones Index fell over 100 points which saw the Yen move back higher as the safe haven currency. Asian markets are also lower today which is continuing to help push up the safe haven plays such as Gold, the Swiss Franc, and Yen. If you are short on the NZD v JPY or AUD v JPY then the momentum is on your side currently and with no major high impacting news likely to change the mood today stocks could finish out the week on a sour note and move the safe havens even higher.

Next week is a big week for economic data and I expect both currency markets and stock index markets to be extremely busy with plenty of volatility.

 

About the Author: Andrew Barnett

Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts, and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular key-note speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).

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