• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Best Managed Accounts
  • Forex Robots
  • Forex Brokers
  • Forex Signals
  • Social Trading Platforms
  • Community Reviews

  • Robots
  • Start Guide
  • Glossary
  • Basics
    • Currency Pairs
    • Charts
    • Candlesticks
    • Trading Tips
  • Strategies
    • Technical Analysis
    • Fundamental Analysis
    • Day Trading
    • Scalping
    • Swing Trading
    • Trend Following
  • News
  • Reviews
    • Forex Robots
    • Forex Brokers
  • Mustreads
  • Crypto Trading

NZD/USD Rallies to 3-Month High on Hawkish RBNZ as Gold Erases 2021 Losses

May 26, 2021 by Forex Winner Leave a Comment

NZD/USD Rallies to 3-Month High on Hawkish RBNZ as Gold Erases 2021 Losses
  • New Zealand Dollar Strengthens on hawkish Reserve Bank of New Zealand sentiments about the economic outlook.
  • Yen continues to lose ground against majors on the growing concern of Japan’s economic outlook.
  • Gold powers through $1900 amid increasing U.S inflation concerns
  • Bitcoin bounce back continues to gather steam above the $40,000 level

The NZD/USD consolidates near three-month highs in the aftermath of a hawkish surprise by the Reserve Bank of New Zealand. The central bank left the cash rate at record lows of 0.25%. It also retained the NZD 100 billion government purchase program highly needed to stimulate the economy.

NZD/USD rally

The pair shot up, having caught some aggressive bids consequently rallying above the 0.7300 level. The support above 0.72800 is the catalyst needed to fuel further upside action.

Best Forex Robots ›

Compare leading trading systems on the market

NZD/USD chart

Amid the broader U.S. dollar weakness, the pair will likely continue edging higher. The RBNZ reiterating that it could start hiking interest rates in the third quarter of 2022 is another development that supports the NZD against the greenback. Improvements in the economic outlook should also continue to support upside action.

Yen weakness

On the other hand, the Japanese yen continues to weaken across the board in the aftermath of the government cutting the economic outlook for the first time in three months. The admission that the economy faces increased weakness in the face of the COVID-19 pandemic is the latest catalyst fuelling weakness in the yen.

The Japanese economy is struggling with one of the biggest economic contractions in the pandemic, taking a toll on economic activities.

Likewise, the GBP/JPY continues to gain ground after the recent consolidation.

GBP/JPY chart

The pair looks set to continue rising on increasing bearish bets against the yen on the government cutting its assessment of the economy for the second time in a year.

Gold above $1900

Gold powered through the $1900 psychological level in the commodity markets as it continues to benefit from dollar weakness. The rally saw the precious metal erase all its 2021 losses. The gains registered in the pair came as inflationary pressures continued to rattle investor’s sentiments on the U.S. dollar.

Gold futures were trading at highs of $1907 after a 0.48% jump Wednesday morning.

Gold spot/ US dollar chart

A weaker dollar should continue to fuel inflation risk, which should favor further gains on the bullion. The European Central Bank Policymakers’ warning that the central bank must keep all the monetary taps open in the fight against COVID-19 also continues to fuel inflation concerns.

Indices stall

In the U.S., a rally of the major indices that started early in the week stalled on Tuesday as the overall market struggled for direction. The S&P 500 slipped 0.2% to 4,188 as the tech-heavy NASDAQ remained flat at 13,657.17, and the Dow Jones fell by 0.2% to 34,312.

S&P 500 index

The lack of direction could persist as market participants wait to see the FEDs tapering schedule. Investors also remain wary of inflation’s long-term outlook, which has been the catalyst behind recent week’s sell-off.

Bitcoin bounce back

Bitcoin’s recent rout appears to have stabilized, with the flagship cryptocurrencies bouncing above the $40,000 level on Wednesday. The sell-off has taken a significant toll on several cryptocurrencies, some of which have corrected from record highs. Likewise, Tesla has been one of the biggest casualties on the sell-off in the flagship altcoin.

BTC/USD chart

After falling below the $32,000 level on Sunday, Bitcoin appears to have regained its upward momentum, having found support above the $37,000 handle. The crypto needs to stabilize above the $40,000 level to have any chance of continued gains.

ETH/USD is also on a recovery path after a recent 30% plus sell-off from all-time highs of $4,300. The pair is struggling to rise above the $3,000 level, weighed by a bearish tone in the overall market.

ETH/USD chart

Best Forex Robots ›

Compare leading trading systems on the market

Filed Under: Forex News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Best Forex Robots

  1. Techberry 8.7
  2. Happy Forex 8.0
  3. Forex Fury 7.7
  4. Promax Gold EA 6.8
  5. Gump EA 6.4

Best Forex Brokers

  1. Techberry 8.7
  2. XM 8.2
  3. eToro 8.1
  4. Pepperstone 8.1
  5. IG 8.0

Latest News

Dogecoin (DOGE) Realized Profits Soar 225% in 24 Hours

May 22, 2025

AML Agency Tells Russians: Crypto Exchanges Send Us Your Data

May 21, 2025

Fresno car dealership owned by former MLB pitcher allowing Bitcoin as form of payment

May 20, 2025

Footer

Forex Broker Reviews

simplefx

SimpleFX Review

December 19, 2019 By Forex Winner

BDSWISS

BDSwiss Review

October 28, 2019 By Forex Winner

atc brokers

ATC Brokers Review

June 14, 2019 By Forex Winner

Forex Robot Reviews

Earn2Trade Review

August 20, 2023 By Shandor Brenner

FundedNext Review

August 16, 2023 By Shandor Brenner

Topstep Forex Review

August 14, 2023 By Shandor Brenner

EMAIL NEWSLETTER

Sign up to receive exclusive forex trading guides and insights from our team of experts!

Copyright © 2025 · Forex Traders Guide · About Us · Contact Us
Privacy Policy · Risk Disclosure