- RBNZ Governor Orr Monetary policy media conference - live link
- RBNZ minutes indicate a split decision on rate hike
- RBNZ says that Businesses reporting lack of demand the main constraint on activity
- NZD marked significantly lower following the RBNZ 25bp rate hike
- RBNZ raise its cash rate by 25bp
- Coming up soon - Reserve Bank of Australia official (Head of Domestic Markets) speaking
- PBOC reference rate for today is the weakest for CNY since December 1 2022
- ICYMI - Threat from Saudi oil minister: told oil speculators to "watch out", pain ahead
- PBOC sets USD/ CNY mid-point today at 7.0560 (vs. estimate at 7.0566)
- Australian Westpac/MI Leading Index for April has its ninth consecutive negative result
- Goldman Sachs' Powell on debt limit negotiations - "there'll be a resolution"
- BlackRock's Rieder says the Federal Open Market Committee (FOMC) likely to pause in June
- ECB hikes still on the boil, but Fed to pause in June (July hike possible) - divergence
- Reuters Tankan survey: Manufacturers index +6 in May, first positive reading this year
- New Zealand Q1 Retail Sales -1.4% q/q (expected +0.2%)
- Citi expect EURUSD to trade in a range of 1.07-1.12 (previously expected rise to 1.15)
- ICYMI: HSBC's 5 reasons it expects the ECB to hike rates 3 more times in the coming months
- 3 Reasons JPMorgan’s Kolanovic is advising clients to further dump equities, grab cash
- Goldman Sachs says there is likely more room for US dollar strength in the near term
- Forexlive Americas FX news wrap 23 May. Debt ceiling talks stuck in the mud
- Republican debt limit negotiator Graves says No additional meetings have been scheduled
- Private oil survey data shows big draw vs. small build expected
- US House Speaker McCarthy says he does not think a debt limit deal will be agreed to today
- Major indices slide as debt talks in Washington muddle along
- AUDUSD heads into the new trading day near lows from last week
- Trade ideas thread - Wednesday, 24 May 2023
The Reserve Bank of New Zealand raised its Official Cash Rate (OCR) by 25bp to 5.5% today in a split (5 to 2) decision and signalled the hiking cycle is over. The Bank noted policy would remain restrictive for some time to come and sees cuts from the back half of 2024. More detail in the points above. NZD/USD was marked lower on the news. As I update its sitting below 0.6200. Yields on NZ 2 years also dropped, around 30bp down as I update. This dragged AUD/USD lower also, but only by a few points. Its under 0.6600 after a 25 or so point range only.
Earlier in the session we had Q1 retail sales from New Zealand. These fell again, after the fall in Q4 of last year, indicating that New Zealand may be moving into recession already.
US debt ceiling talks stalled, with no further meetings Tuesday evening US time.
Apart from NZD and AUD major FX was very quiet indeed.
Asian equity markets all slid after a weak lead from Wall Street:
Japan’s Nikkei 225 -1%
China’s Shanghai Composite -0.8%
Hong Kong’s Hang Seng -1.1%
South Korea’s KOSPI -0.1%
Australia’s S&P/ASX 200 -0.5%