FX News: NZD Rises ahead of RBNZ Meeting

FX NEWS – The New Zealand dollar recovers from recent losses in ahead of the Reserve Bank of New Zealand’s meeting tomorrow. The bank will release its rate decision in the meeting.

The kiwi currency exchanged 62.91 US cents, from 62.74 cents in the previous close.

Markets appear to be extremely bearish on the NZD, since they expect the currency to continue going down.

On the flipside, the kiwi currency may also reverse and see some gains. That’s because some investors are expecting a slight pullback.

These traders believe that the central bank may be more hawkish that everyone expects. Analysts said that this isn’t uncommon in this portion of the market.

Overall, the markets expect the RBNZ to signal more easing in the future. Traders expect it to hold rates at 1%.

Elsewhere in the FX News

Meanwhile, the dollar gained some boost from the signs of progress in the US-China trade negotiations. The US dollar index rose higher to 98.621.

Over in Europe, the common currency nursed its wounds after the disappointing German and French PMI data. Overnight, the euro lost 0.2% as the markets absorbed news of faltering European business activity.

In the UK, the pound sterling slipped to $1,2431 ahead of a key Supreme Court ruling. The ruling is about whether British Prime Minister Boris Johnson acted unlawfully when he suspended the parliament.

The Australian dollar, meanwhile, was steady ahead of a key speech. Reserve Bank of Australia’s Governor Phil Lowe will be delivering a speech later in the day. Markets expect a dovish tone since jobs data last week came in weak.

In Asia, Bank of Japan Governor Haruhiko Kuroda will also delivery a speech later in the day. The Chinese yuan gained slightly to 7.1056.