Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.
New Zealand dollar heads south
On Wednesday, the New Zealand dollar went down over 1.5% versus the evergreen buck in Asia right after the Reserve Bank of New Zealand suddenly told that the next move in rates will probably be a cut.
As a matter of fact, the currency pair NZD/USD hit 0.6796, decreasing by 1.55%.
The dive in the New Zealand dollar came after the country’s major bank kept the interest rate at 1.75%, although added that the next rate move will most likely be a cut.
Following the New Zealand key financial institution’s sudden change in its stance on interest rates, market experts from ANZ told that the RBNZ will probably have rates cut in November in 2019, while an earlier rate trim is also real.
Besides this, the USD index gauging the greenback’s purchasing power versus its primary peers jumped by about 0.2% showing 96.393.
An inversion of the American yield curve affected investor sentiment and was generally interpreted as the key driver for a steep stock selloff as well as a headwind for the evergreen buck late the previous week.
High-level statesmen from China and America, including top trade negotiator Robert Lighthizer as well as Treasury Secretary Steven Mnuchin, are braced for another round of trade negotiations later this week in China.
Aside from that, the currency pair USD/CNY stood still sticking with 6.7148 because data revealed that a profit of large Chinese industrial companies sank by 14% year-on-year hitting 708.01 billion Yuan in the January-February period, which appears to be the fastest tempo since 2011.
Additionally, the currency pair GBP/USD went down by 0.1% trading at 1.3189.
As for the currency pair USD/JPY, it stood still demonstrating an outcome of 110.62.
The Reserve Bank of New Zealand will reveal the official cash rate, monetary policy statement, make a rate statement, and after that will answer questions in a press conference on February 23, 03:00 GMT+2.
Reserve Bank of New Zealand (RBNZ) will reveal Official Cash Rate and make a statement about monetary policy on October 6, 04:00 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.