ForexLive Asia FX news wrap: RBNZ not as dovish as expected

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Thursday 10 August 2017

The Reserve Bank of New Zealand pretty much kicked off the session with their monetary policy announcement and accompanying Monetary Policy Statement (the MPS is issued by the RBNZ once a quarter). As was unanimously expected the Bank left the Official Cash Rate (OCR) on hold at 1.75%, but caught the market unawares with a less dovish than expected MPS.

NZD/USD moved a little higher, getting above 0.7360 before beginning a slow trek back to where it started and then subsequently a little lower overall for the session. As I update its been as low as circa 0.7300. Movement in the NZD/USD was loosely tracked by AUD/USD (very loosely) - its been above 0.7905 and has returned to be also net lower on the session by a little.

Regional equities have again been on the softer side, 'risk' being cited (lower) again, a factor weighing on the CAD, AUD and NZD (ps. I should note also that comments from RBNZ Governor Wheeler at his press conference and appearance in parliament included remarks on possible intervention. This would seem a very loose threat but these too nevertheless weighed on the kiwi).

USD/JPY ticked a few points higher into the Tokyo fix time today, popping above 110.10 briefly before giving back some of its gains - albeit within a small range on the session.  

As I update EUR/USD is slipping a few points, its towards the lower end if its small 25-odd point range on the session. CHF, too, is weaker (USD/CHF on its session high). GBP is on its lows against the USD too.

Gold is barely changed on the session.

And, as I post, NZD (and AUD) are making fresh session lows.

Regional equities:
  • Nikkei %
  • Shanghai %
  • HK %
  • ASX %

Still to come: More on the "Lots of UK data to be released tomorrow" (previews)