Forex Marketz Daily Forex News – Fully Markets Update
The New Zealand dollar, at one point, soared by one percent after the surprise move by the Reserve Bank of New Zealand.
The Reserve Bank of New Zealand (RBNZ) surprisingly kept their monetary policy and official cash rate (OCR) at today’s monetary policy announcement. Other currencies, like the U.S. dollar were trading near the flat lines.
Most analysts had expected the RBNZ to cut their official cash rate by at least 25 basis points from one percent to 0.75 percent.
Overnight index swaps had priced in a better than 75 percent chance of a rate cut today as they expected the New Zealand central bank to insulate their economy from a slowing gross domestic product growth rate.
The benchmark NZD/USD currency exchange rate gained a cent to trade at $0.6403 after the decision. This put it on course for its best daily percentage and daily gain in a year. NZD front end government bond yields also soared to better than two year highs.
The RBNZ said that aggressive easing, earlier this year, meant that current monetary policy was in good shape. They left the door open for further easing, if needed.
The U.S. dollar index is currently trading near a monthly high price point.
New Zealand Dollar Gains but Forex Traders Digest Trump’s Trade Comments
The only positive thing President Donald Trump said, during his speech in New York, about the ongoing trade talks with China is that a deal was very “close.” He was devoid of any specifics.
The longer than 16 month trade war between the two global superpowers has roiled the global financial markets and slowed global economic growth.
Traders are also monitoring the ongoing unrest in Hong Kong. Overnight, the City’s policy battled pro-democracy protesters at several university campuses.
There were some very serious battles in this Asian financial center which has paralyzed the city. Protestors were attacked with tear gas this morning.
