The Reserve Bank of New Zealand made announcements regarding its monetary policy. The NZD/USD dropped.
Evergreen buck keeps to 2-week maximum
On Wednesday, the evergreen buck was intact, keeping to a two-week maximum versus its key rivals, while the Australian dollar went down to its lowest value of 2019 after data disclosed that the Australian economy speeded down to an almost standstill in the fourth quarter.
Tracking the purchasing potential of the evergreen buck versus its major counterparts the USD index accounted for 96.80, having rallied to 96.95 yesterday - its best outcome since February 15.
Firm American economic data underpinned the evergreen buck after reports on Tuesday revealed a rebound in housing as well as services activity that eased fears over a deceleration in the world’s number one economy.
Versus the Japanese yen the greenback tumbled a bit demonstrating a reading of 111.85, having reaching 112.13 yesterday – its best outcome since December 20.
Moreover, the Australian dollar inched down by nearly 0.8% versus its American rival to hit the lowest value since January 4 after data revealed that the Australian economy tacked on by 0.2% in the fourth quarter, which is below an anticipated 0.5% leap.
The dismal data backed recent evidence of decelerating domestic momentum and also encouraged market hopes for a rate cut from Australia’s major financial institution in 2019.
Meanwhile, the common currency was nearly intact versus the evergreen buck showing $1.1301, keeping to two-week minimum against the backdrop of hopes that the EU’s major bank would indicate a delay in lifting rates until 2020 and will have long-term bank loans relaunched soon to withstand an economic deceleration at its meeting on Thursday.
In addition to this, the Canadian dollar traded close to its lowest outcome for almost six weeks because traders are waiting for a policy verdict by the Bank of Canada later in the day.
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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