The Reserve Bank of New Zealand made announcements regarding its monetary policy. The NZD/USD dropped.
New Zealand dollar heads south as interest rates are intact
On Thursday, the New Zealand dollar inched down after the Reserve Bank of New Zealand told that it’s going to leave interest rates on hold at the record minimum of 1.75%. The major financial institution doesn’t intend to change it for up to two years due to the fact the overall outlook for New Zealand’s economy is still dismal.
The currency pair NZD/USD went down by 0.82% hitting 0.6679. On Thursday, Adrian Orrr, RBNZ Governor told that he’s ready for a rate decrease if required.
Moreover, the major financial institution had its estimate for economic surge this year trimmed because data disclosed that business confidence headed south, while housing markets speeded down too.
Risks to the country’s exports rallied too against the backdrop of global trade clashes.
At the same time, the Chinese Yuan managed to ascend by 0.2% versus the evergreen buck. Some experts are assured that the recent weakness in the Chinese Yuan is generating challenging headwinds for China’s intention to promote its Yuan worldwide.
China’s currency was pressured since July in the face of an everlasting trade clash with America. Market expert are currently assured that its stance to become another global currency will probably stumble on a series of obstacles.
Some experts told that the dive the Chinese currency started earlier in 2018 because the US key financial institution kept lifting rates.
Considering an escalating trade conflict between China and the United States, one can assume that the trade volume between these leading economies will slump anyway.
Tracking the evergreen buck’s purchasing potential versus a pack of its main rivals, the USD index managed to rally by 0.03% hitting 94.98.
The US currency slumped a bit versus the Japanese yen. The currency pair USD/JPY lost 0.06% reaching 110.96.
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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