ForexLive Asia FX news wrap: NZD/JPY higher

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Tuesday 16 July 2019


Forex news for Asia trading Tuesday 16 July 2019

NZD/USD traded higher (in a limited range) through the session, after CPI data for Q2 (official CPI data from NZ is once a quarter only) came in line with the median consensus estimate. The later CPI data (from the RBNZ, followed at 0300GMT) was unchanged from Q1.

NZD/USD managed to pierce its European (Monday) high and consolidate the upward momentum it has been showing since July 10.

AUD/USD was also data-driven, though not very much! RBA July monetary policy board meeting minutes were released today, showing a milder easing bias from the bank after back to back rate cuts in June and July after a muti-year hiatus. The key take away for those wondering when the next policy move will come was that the Bank will continue its monitoring of developments in the labour market and adjust monetary policy "if needed". This translates as they are on hold for the months ahead while the multi-pronged stimulus impact (rate cuts, tax cut, easier lending for housing, infrastructure spending etc.)  is assessed. It would seem likely November would be the next move, if needed. 

A note, though, on Thursday this week we get the next job market data from the Australian Bureau of Statistics. The RBA aim is to drive unemployment to 4.5%. It won't be anything near that in Thursday's data but if u/e ticks higher it'll move expectations of a nearer-term rate cut back into contention. 

AUD/USD is little changed on the session. 

USD/JPY was another (small) mover, trading up briefly above 108.00. Japanese markets reopened after a long weekend holiday with little impactful news for the currency today.

EUR, GBP, CAD are all little changed against the USD.

On the way …

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose