The Reserve Bank of New Zealand made announcements regarding its monetary policy. The NZD/USD dropped.
Australian dollar is nearly intact after RBA
On Tuesday, the Australian dollar was nearly intact after the Reserve Bank of Australia made up its mind to leave its overnight rate on hold at 1.5%. Additionally, the Chinese Yuan rallied because an official of the People’s Bank of China told that the Yuan’s internationalization is market-driven.
As a matter of fact, the AUD/USD stood still showing 0.7211. As for the currency pair NZD/USD, it managed to add 0.1% being worth 0.6652. Australia’s key bank told that it actually expected a gradual pickup in inflation. Moreover, the RBA is assured that the country’s GDP will ascend at about 3.5% over the next few years.
Besides this, the currency pair USD/CNY slid by 0.1% coming up with a reading of 6.9239 because during the China International Import Expo Huo Yingli, director general of the Monetary Policy Department II of the People's Bank of China told that the national currency’s internationalization happens to be market-driven.
He told that the Yuan’s internationalization turns out to be a natural thing powered by the market. He added that its basic motivation is built around real demand from investment and trade.
The Yuan reference rate was set at 6.9075 versus yesterday’s reading of 6.8976 by the People's Bank of China.
Estimating the greenback’s actual purchasing power against its key rivals the USD index surged by up to 0.1% ending up with 96.19 because traders waited for the American midterm elections due later in the day.
As some analysts pointed out, financial markets are actively pricing in the likelihood of the Republicans’ win - even in the House. It’s generally believed that a Republican victory in both chambers will most probably back the evergreen buck.
In addition to this, the currency pair USD/JPY headed north by 0.1% reaching 113.34.
The US CPI and core CPI are due at 15:30 MT time on May 12.
April seasonal patterns weren’t supposed to work, but somehow they did. Even a strong fundamental issue such as the global recession amid the coronavirus couldn’t overwhelm it. That’s why May seasonal patterns may work as well.
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