The New Zealand dollar’s recent advance has come to a halt recently after the Reserve Bank of New Zealand suggested that interest rates may need to be cut further from their current record low of 2.0%. The NZD’s retreat has been particularly noticeable against the Australian dollar as the AUD/NZD pair has surged back above 1.0500 after dipping to as low as 1.0240.
The British pound/U.S. dollar (GBP/USD) currency pair has finally found some support today, though it is too early to say whether the selling pressure is over just yet. There hasn’t been any real news out to support the pound. If anything, news out of the UK has been actually bearish.
Ahead of next week’s talks in Algeria, Reuters reported this morning that Saudi Arabia is apparently willing to reduce its oil output for as long as Iran agrees to freeze its production at current levels. Reuters cited three unnamed sources behind this story, but so far there has been no official confirmation or denial.
The dollar fell to its lowest in a week against a basket of major currencies on Thursday as investors sold the greenback following a writedown of longer-term interest rate expectations from the Federal Reserve.
The U.S. dollar is down today, especially against commodity currencies after the recent bounce on gold and silver, and also after the current moves in crude oil. However, we see commodity pairs in corrective waves within bigger USD trend, which is expected to resume this week--but maybe after the Fed rate decison on Wednesday.