Kiwi Hikes As RBNZ Holds Rates
On February 12 this year, the New Zealand Dollar or known as Kiwi rises broadly in the foreign exchange market.
The increase took place after the Reserve Bank of New Zealand’s hawkish is on hold.
Moreover, further commodity currencies go along as risk appetite resumes to the markets. It is with optimism that China’s coronavirus plague would peak soon.
The US stock indices also reached new records after Fed Chair Jerome Powell’s positive comments.
Meanwhile, the Dollar turns weaker. On the other side, there is no clear backing seen in Euro, which is trading as the shakiest for today for now in the FX Market.
To be precise, the EUR/USD pair is still on track to retest 1.0879 at a low level.
However, it is starting to shake off some downside momentum.
The greenback also turned weaker in the forex trading with all other major pairs.
In fact, the focus is actually back on 0.9740 minor support in the USD/CHF pair.
On the other side, the 1.3262 minor support is in the USD/CAD pair, along with the 0.6774 minor resistance in the AUD/USD pair.
The break of these levels will signify a short-term surpassing in the greenback. Moreover, it may perhaps enhance the EUR/USD pair for a recovery.
In Asia, Nikkei ended at a high level of 0.74%. It goes along with the Hong Kong HSI that inched up 0.97%.
Further Measures in the FX Market
The following stock exchange all strengthened after forex trading; it includes China Shanghai SSE that is above by 0.71%, Singapore Strait Times is also up 1.34%.
Lastly, Japan’s 10-year JGB yield bolstered by 0.0174 at -0.039.
Overnight, the DOW slumped by -0.00%.
However, the S&P 500 grew by 0.17%. It is along with NASDAQ that soared by 0.11%.
Elsewhere, the RBNZ left the Official Cash Rate untouched at 1.00%. The measure is comprehensive, as projected.
In an accompanying statement, the bank noted “soft momentum” has persisted in 2020″.
The bank added, but “growth is expected to accelerate over the second half of 2020 driven by monetary and fiscal stimulus and the high terms of trade.”
It also indicated that the impact of the epidemic of China’s coronavirus would be “of short duration” only.
The statement is somewhat more hawkish than November’s measure.
On the other side, employment was observed by the RBNZ as “at or slightly above its maximum sustainable level.” It has, to some extent, upgraded from “around” the level.
The bank further stated that consumer inflation is “close to” the 2% mid-point of target range too.
Meanwhile, low interest remains necessary. The overall statement recommends that the RBNZ is more probable to be on hold for the rest of the year than not.
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