Reserve Bank of New Zealand's Governor Graeme Wheeler feels that a weaker Kiwi would counterbalance the global uncertainties. The Kiwi continues to weaken after the Reserve Bank of New Zealand's meeting last month where it maintained steady cash rates at 1.75% and stated that there will be not be any change for two years. Also, the interest rates were uncertain after the US President Donald Trump's speech on protectionism.
Governor Graeme Wheeler added that there was a vast improvement in the global growth owing to the surge in commodity prices. He stated that the prevailing global uncertainty was due to President Donald Trump's policies.
Japan's final GDP revised higher from 0.2% to 0.3% in Q4 2016 and marked the fourth consecutive quarter of growth.
Japan's bank rose to 2.8% in February versus 2.5% in January. Japan's current account surplus slipped from 1.66T JPY to 1.26T JPY in January with expansions in exports and government spending not much behind. Japan's exports increased by 2.6% and the imports went up by 1.3%. The government maintained a steady growth of 0.3% from the preliminary estimates.
The Bank of Japan is trying to boost the consumer spending, as it remains one of the best ways to reach their inflation targets.
After falling heavily in the recent days, the pair continues with a bearish movement on the 4-hour chart. The price manages to provide a clear negative close below 79.489 levels.
The 100SMA and 50EMAs are below on price action and could very well push the bears into more action. The pair may extend its downtrend to 77.977 levels and confirm the domination of the bearish bias in the upcoming trading. The bearish scenario depends on the stability of the price within the bearish channel's levels and this increases the negative pressure on the current trading.
We notice the stochastic attempts to reach the oversold level, which provides the required negative momentum until the suggested targets are reached.
For more daily market insights, visit NoaFX Knowledge Center.