Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
NZD/USD: outlook for March 20-24
2019-11-11 • Updated
The kiwi dollar jumped to 0.7050 on Wednesday after Fed’s officials refused to accelerate the current pace of the monetary tightening. Towards the end of the past week, there was a pullback towards 0.6970. New Zealand’s annual growth rate slowed further despite surging immigration, low borrowing costs and evident activity in the housing sector. This casts doubt on the latest central bank’s projection that growth would accelerate to more than 4% by the second half of 2017.
The main focus of the next week will be on the Reserve Bank of New Zealand monetary policy meeting on Thursday. Most analysts expect the central bank to stay on hold adopting a wait-and-see approach. Ahead of the meeting, we will get an update of global dairy prices. Then we will be waiting for Thursday’s Fed Chair Yellen speech followed by the comments on the US economic outlook from other FOMC members.
The technical outlook for the pair is neutral. NZD/USD might spend a few days in the consolidation phase before facing rather sturdy resistances at 0.7050 (38.2% Fibo retracement level from last year low), 0.7120 and 0.7140. A pullback below 0.6940 would indicate that the immediate upward pressure has eased and the way towards the next support at 0.6915 (50% Fibo retracement level) is open.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
China's economy is rocketing. On the other hand OPEC+ countries take the decision to cut the production. What will be the impact on the oil price?
Are you aware of the recent crackdown by the SEC on major cryptocurrency exchanges, Binance US and Coinbase? Surprisingly, savvy Bitcoin traders seem unfazed, as options-based implied volatility metrics indicate. It appears that the lawsuits were anticipated and already factored into the market. Implied volatility reflects investors' expectations of price turbulence, but little evidence of heightened concern exists.
Let's dive into the recent debt ceiling saga in the US and its implications for the economy, deficit, and inflation. The good news is that a new debt deal is on the horizon, saving us from a potential default on June 5. Phew! This deal will impact the economy by providing stability and avoiding a financial catastrophe.
Get ready for some suspense as the Bank of Canada faces a tough decision on whether to raise interest rates or keep them on hold. The resilient Canadian economy and the goal of curbing inflation further are at the heart of this dilemma. While some money markets and economists predict another rate hike, others believe the central bank should exercise caution and wait, hinting at a possible increase later in the summer.