The Kiwi Dollar remains subdued despite an improvement in market risk sentiment. While the number of coronavirus cases continues to climb, global markets have rebounded with stock prices surging and safe haven assets such as Gold and the Japanese Yen both giving back some of their recent gains. The New Zealand Dollar has been unable to benefit from the positive vibe and opens down on most cross rates this morning.
Mixed US Data
The US dollar was mainly firmer overnight despite some mixed data earlier this morning. Headline Durable Goods came in strong, but business investment missed expectations and contracted 0.9%. With expectations of more Federal Reserve rate cuts by the end of 2020, all eyes now turn to Jerome Powell tomorrow for the latest Fed rate decision and economic outlook. While the Fed is expected to hold rates, recent developments are fuelling expectations of further rate cuts later in the year.
The Day Ahead
All eyes on Australian CPI data this afternoon which will be a key indicator ahead of the RBA’s interest rate decision next week.
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