ForexLive Asia FX news wrap: RBNZ sends NZD higher

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Wednesday 12 February 2020 

An upbeat RBNZ flipped away from a dovish stance in their Monetary Policy Statement today. The Bank left the OCR unchanged at 1%, a widely (basically unanimously) expected decision but the big news was a shift to neutral in their outlook for the balance of this year - their projections show no rate hikes for 2020. A more hawkish take is that they project a rate hike as the next move, but that is well into 2021, H2 (see bullets above for more).

The NZ dollar gained around three-quarters of a US cent (at its session high) but has since backed off a little. This dragged AUD along for a few points gained also.

There was little news of impact otherwise. Justin  posted yesterday on the change to how China is reporting coronavirus cases

There have been many, many questions about the veracity of the reports up until now, and this will only serve to increase those questions. The data today, for example, showed a continuing stabilisation in new cases. But is this correct? All baises aside the change in definition does muddy the waters a bit.

Apart from the kiwi move (and the echo in AUD) movement across other major FX was limited, small ranges only. 


For the US politics folks, Bernie Sanders won the Democratic primary in New Hampshire. Congrats to him. I do wonder if the loss of Jeremy Corbyn in the UK election may have been forgotten already. And what's-his-name in Australia last May too. 

Forex news for Asia trading Wednesday 12 February 2020 e

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