Global Markets:
- Asian stock markets: Nikkei up 0.10 %, Shanghai Composite gained 0.75 %, Hang Seng rose 0.50 %, ASX 200 rallied 0.80 %
- Commodities: Gold at $1254 (+0.65 %), Silver at $16.58 (+1.25 %), WTI Oil at $42.50 (-0.05 %), Brent Oil at $44.80 (-0.10 %)
- Rates: US 10-year yield at 2.16, UK 10-year yield at 1.04, German 10-year yield at 0.26
News & Data
- RBNZ Keeps Official Cash Rate Unchanged at 1.75%, As Expected
- RBNZ: Monetary Policy Remain Accommodative for Considerable Period
- RBNZ: Longer-Term Inflation Expectations Remain Well-Anchored at Around 2%
- RBNZ: Expects Future Headline Inflation to Reach the Midpoint of The Target Band Over the Medium Term
- RBNZ: Inflation Rise Mainly Due to Temporary Factors, May Lead to Some Variability in Headline Inflation
- RBNZ: House Price Inflation Has Moderated Further, Moderation Projected to Continue
- RBNZ: Risk of Resurgence in House Price Inflation Given the Ongoing Imbalance Between Supply and Demand
- PBoC Fixes USDCNY Reference Rate At 6.8197 (prev fix 6.8193 prev close 6.8299)
- Asian stocks rise as oil tries to claw up from 10-month low – RTRS
- Dollar index steady below one-month high; Kiwi firms after RBNZ – RTRS
Markets Update:
The RBNZ kept rates unchanged as expected, and maintained an optimistic outlook for the NZ economy. NZD/USD rallied from 0.7210 to 0.7270 immediately after the statement was released. The pair retraced some of the gains later in the session, but remains well bid. A test of 0.7320 resistance seems likely in the near-term.
AUD/NZD selling brought the Australian Dollar under pressure. AUD/USD fell from 0.7560 to 0.7540. Support at 0.7520 is now key. A break below that support level could signal that AUD/USD will extend losses to 0.74 in the short-term.
USD/JPY fell in Asia, despite the recovery in stock markets. Support is seen at 110.80 and 110.20/25, while strong resistance lies ahead of 112. Overall, the outlook is still positive and there is solid buying interest ahead of 110.
The Euro remains resilient and managed once again to bounce ahead of 1.11. In Asia, EUR/USD recovered to 1.1170. Should it manage to clear 1.12 resistance, a retest of 1.13 is likely.
Upcoming Events:
- 13:30 BST – US Initial Jobless Claims
- 13:30 BST – Canadian Retail Sales
- 14:00 BST – US House Price Index
- 15:00 BST – Euro Zone Consumer Confidence
