Entering into European session, New Zealand Dollar is overwhelmingly the weakest one today. Kiwi dives sharply after RBNZ left OCR unchanged at 1.75% but turned dovish. It indicates that the next move will be a cut. Markets are pricing in full cut in November but it could happen as soon as in May. Australian Dollar follows as the second weakest. RBA is generally expected to cut interest rate twice this year. RBNZ’s turn just adds to the case for dovish RBA.
Meanwhile, Yen is the strongest one for today so far but momentum is not that apparent yet. Dollar follows as the second strongest mainly thanks to weakness elsewhere. In particular EUR/USD’s broke 1.1273 minor support to resume fall from 1.1448 and could be heading back to 1.1176 low. Sterling is awaiting votes on Brexit alternatives in the Commons later today.
In Asia:
- Nikkei closed down -0.23%.
- Hong Kong HSI is up 0.57%.
- China Shanghai SSE is up 0.60%, back above 3000 handle.
- Singapore Strait Times is up 0.30%.
- Japan 10-year JGB yield is down -0.027 at -0.068.
Overnight in US:
- DOW rose 0.55%.
- S&P 500 rose 0.72%.
- NASDAQ rose 0.71%.
- 10-year yield dropped -0.006 to 2.414.
