Talking Points:
New Zealand Dollar implied volatility is the most elevated of its major counterparts The currency faces US CPI, FOMC[1] minutes and a speech from RBNZ’s McDermott NZD/USD[2] could be heading higher and it faces a critical resistance line from 2017 Build confidence in your own NZD/USD strategy[3] with the help of our free guide! The New Zealand Dollar is priced in for what could be intense price action in the near-term, and NZD/USD could soon face a critical resistance level. One-day implied volatility for the pair stands at 11.86% which is not only the highest of the majors, but it is also near a two-month high. The similar one-week reading is also the most elevated of the majors. Let’s take a look at what could drive price action. Implied Volatility and Market Range for the FX Majors