New Zealand Dollar severely hit

10 August, 2018

Investors in Asia largely brushed off the ongoing trade fight between China and the U.S., with Shanghai’s blue-chip stocks climbing 2.4%, a move supported by the tech and financial sectors. Solid economic data and possible government intervention through monetary & fiscal policies encouraged investors to take some risk on Thursday. Data on Wednesday showed that China’s exports have not yet been impacted by U.S. tariffs rising 12.2% in July from last year. The Producer Price Index cooled slightly in July, coming at 4.6% from 4.7% in June and suggesting that policymakers may still have further room to loosen monetary policy. However, if President Trump goes ahead with his proposed tariffs of 25% on $200 billion worth of Chinese imports, these gains will be rapidly wiped off.

RBNZ pressures the New Zealand dollar

Currency markets were in focus during early morning trade with the New Zealand Dollar tumbling more than 1% against the U.S. Dollar. NZDUSD fell to its lowest level since March 2016 after the Reserve Bank of New Zealand surprised traders by announcing that it is committed to keeping interest rates at record lows through 2020. The central bank also downgraded its 2019 GDP forecast to 2.6% from 3.1%. Given the slowdown in economic activity and the ongoing global trade dispute, the RBNZ is sending a message that further easing may be possible in the months ahead. This is likely to keep the NZD under pressure and test new lows below 0.65 by year-end.

Ruble falls on sanctions

The period of sideways trading which lasted for four months seems to be over for the Ruble.  The Russian currency fell more than 3.3% on Wednesday as Trump’s administration proposed fresh sanctions following the poisoning of a former Russian agent in the U.K.  The decline in oil prices also helped to intensify the fall in the Ruble and with such uncertainty, investors will need to price in further risk premium on Russian assets. Investors will likely ignore the Russian economic fundamentals in the weeks ahead and focus on political developments. The Ruble may find some support around the 67 level, but a break above will lead to further selling pressure. 


Source link   Presented by FXTM

New Zealand Dollar nosedives

The New Zealand Dollar weakened against every single G10 currency this morning after the Reserve Bank of New Zealand (RBNZ)...

NZ Inflation Weaker Than Expected

The quarterly inflation report from New Zealand saw consumer prices rising at a slower pace than forecast. Data from Statistics New Zealand showed...

RBNZ Interest Rate Decision

We could see some volatility in NZD pairs later in the Asian session around what is probably the most important and market-moving event of the month...


NZD falls on RBNZ dovish stance

It's been an exciting morning for the Reserve Bank of New Zealand as they announced that they see rates being held at 1.75% until 2020 in the current market...

NZD slips on trade data

The New Zealand economy looks to be taking a hit, with trade balance data coming in much weaker than expected at -113M (200M exp), showcasing that...

NZD/USD: No signs of a near breakout

NZD/USD has been stuck in a sideways range of 0.6690-0.6860 in July, and shows no sign of a near term breakout, according to Imre Speizer, Head...


NZD sinks further as the USD shines

The New Zealand dollar has taken a dive today as pressure continues to be piled on commodity currencies and the NZD especially. With some very poor...

NZD in focus ahead of RBNZ rate decision

There is a lot of heat on the upcoming interest rate decision for New Zealand; not because of the fact that markets are expecting it won't change, but more...

RBNZ holds rates, and oil bears strike

The Reserve Bank of New Zealand has kept interest rates flat at 1.75% just hours ago. While there had been the odd rumour of a hike, in reality...

  


Share it on:   or