The Drop of Interest Rates Goes Unnoticed by the New Zealand Dollar
Daily Market Review — 23/07/2015
Yesterday at 21:00 (GMT) the Reserve Bank of New Zealand has announced its decision on interest rates and released the accompanying statement. The central bank decided to lower its rate by 25 basis points from 3.25% to 3%. It is worth mentioning that such scenario was anticipated by investors, so the first reaction of the market was reverse. The future for the New Zealand currency is rather negative. Governor of the Reserve Bank of New Zealand Graeme Wheeler said that prospects for economic growth in New Zealand are currently even weaker than forecast in June, and the economy requires further weakening of the local currency.
Resistance: 0.6652, 0.6666, 0.6721
Support: 0.6596, 0.6557, 0.6504
In anticipation of the publication of the minutes from the last meeting of the Bank of England, the British currency rose in yesterday’s trading during the Asian session. The minutes stated that all members of BOE were unanimous in their decision to leave monetary policy unchanged. Bank of England Governor Mark Carney said that the first rate hike could occur in late 2015 or early 2016. Such a statement triggered a temporary jump of the British currency. Today the market focused on the data on retail sales, which will be released at 08:30 (GMT).
Resistance: 1.5647, 1.5670, 1.5735
Support: 1.5577, 1.5527, 1.5450
Boeing Company (BA)
Boeing, the largest US aircraft manufacturer, released its quarterly report yesterday. It turned out to be better than forecast. According to the report, the company’s profit for the second quarter per share was $1.62 versus an average forecast of $ 1.38. Revenue grew by 11.3% in comparison to the same quarter of the previous year. Also, the company said that it’s planning to supply the market with about 775 aircraft this year.
Resistance: 147.69, 148.24, 148.76
Support: 145.08, 144.20, 143.44
Gold continues to remain under pressure as market participants again turned their attention to the anticipating possibility of the first rate hike by the US Federal Reserve. Analysts predict it could happen at the September meeting of the FOMC. It should also be noted that James Bullard, which this year stands as an alternative member of the FOMC, said he estimates the probability of the first increase in September more than 50%.
Resistance: 1099.68, 1109.12, 1118.86
Support: 1093.07, 1087.40, 1084.55