Forex news for Asia trading Wednesday 24 June 2020

The Reserve Bank of New Zealand monetary policy meeting was the focus for the kiwi $ on the session here. The Bank left both the cash rate and the size of its Large Scale Asset Purchase (LSAP, the RBNZ's QE program) unchanged. In comments accompanying the decision and further communications from the RBNZ (minutes) the Bank expressed, in a nutshell:

  • the willingness to do more if necessary, will monitor and review
  • downside risks persist for the economy
  • the NZD strength is a negative for NZ exporters.

NZD/USD dropped on the announcement after early small gains ahead of decision time.

Other currencies net saw gains on the session, EUR, AUD, GBP all a little higher to varying extents.

News and data flow otherwise was light. We did get the 'Summary of Opinions' from the Bank of Japan June policy meeting. The Summary comes out many weeks ahead of the full minutes and this time around there was once again not too much in them to surprise. USD/JPY has had a 20 or so point range only.

Private oil inventory survey data released at the end of the US day showed a mild build for headline US crude stocks and draws in products. Oil prices lost some ground and have maintained these here. CAD is sitting around its US session lows against the USD.

Forex news for Asia trading Wednesday 24 June 2020