ForexLive Asia FX news wrap: Kiwi falls after the RBNZ lets the dove out

Author: Justin Low | Category: News

Forex news from the Asian trading session - 10 May 2018

Headlines:

Markets:

  • CAD leads, NZD lags behind on the day
  • Asian equities higher on the day, Hang Seng leads with +0.88% gains
  • Gold up by 0.10% to $1,314.00
  • WTI up by 0.84% to $71.75
  • US 10-year yields down by 2 bps to 2.982%
  • Bitcoin up by 0.86% to $9,327


The main story of the session was the RBNZ shifting to a more dovish stance in its monetary policy meeting today. The central bank revised lower its inflation forecast and pushed back its inflation target outlook, while adding that the next rate move - whether up or down - is equally balanced.

The latter put together with a signal of a lower inflation view led the kiwi to fall heavily on the day. NZD/USD continues to trade near the lows at 0.6920 currently. The low for the day was 0.6917. Meanwhile, AUD/NZD rose to break above the 100-day moving average for the first time since the end of January.

Apart from that, there is minor dollar weakness across the board but nothing too notable. The loonie leads the way as oil prices continue to soar, with both WTI and Brent touching their highest levels since November 2014 - up by 0.8% and 0.7% respectively at the moment.

And in the region, Malaysia's 14th general election saw Tun Mahathir's opposition coalition oust Najib Razak's party - which has been ruling the country for over six decades - by gaining a simple majority.