What does the market look like as the US wakes up for the Wednesday morning?
|The Reserve Bank of New Zealand left interest rates unchanged at its August meeting. According to the RBNZ Governor Graeme Wheeler, monetary policy will remain accommodative for a considerable period because of numerous uncertainties. Wheeler also let the market know that the central bank would like to see a lower NZD. In addition, New Zealand’s government has recently cut its economic growth forecasts.|
|If the RBNZ sticks to its dovish rhetoric, the NZD will be under negative pressure. Any improvement in the central bank’s communication because of the new data will give a boost to the New Zealand’s currency.|
|The results of the RBNZ meeting will be announced at 23:00 MT time on September 26. It will be a good time to trade NZD.|
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.
The New Zealand interest rate is announced on Wednesday at 05:00 MT time.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.