The Reserve Bank of New Zealand made announcements regarding its monetary policy. The NZD/USD dropped.
Evergreen buck stands still
On Tuesday, the evergreen buck was still fairly intact due to the fact that Fed Chair Jerome Powell told that the US major financial institution could consider completing its reduction of the balance sheet.
On Tuesday, Fed Chair Jerome Powell told in testimony prepared for delivery to the U.S. Senate Banking Committee that the major bank can currently assess the appropriate timing as well as approach for the completion of balance sheet runoff.
The major US bank has paused on its tempo of rate lifts as it currently estimates headwinds in the national economy and also abroad, excluding the phrase “gradual increases” in interest rates from its January’s policy statement.
Estimating the evergreen buck’s purchasing power in contrast with its main counterparts the USD index slumped by about 0.04% ending up with 96.23.
As a matter of fact, the evergreen buck managed to tack on versus the safe-haven Japanese yen. The currency pair USD/JPY tacked on by 0.12% coming up with a reading of 110.79.
In addition to this, the UK currency managed to revive because the Labour Party told it would come up with an amendment for another referendum on Great Britain departing from the European bloc. While it’s not anticipated to pass, it actually drives hopes among market participants that the United Kingdom is going to try extending the deadline to leave the EU. Eventually, the currency pair GBP/USD tacked on by up to 0.72% being worth 1.3184. As for the common currency, it was intact. The currency pair EUR/USD went down by 0.01% trading at 1.1355.
Meanwhile, in Australia, the currency pair AUD/USD dived by 0.06% reaching 0.7160. As for NZD/USD, this currency pair dipped by approximately 0.03% trading at 0.6878.
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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