The Kiwi Dollar opens flat this morning failing to make any meaningful bounce higher after yesterday’s falls. Any moves today are expected to be contained as markets await tonight’s U.S non-farm payroll numbers, along with various speeches from US Fed members.
All Eyes on RBNZ Next Week
Yesterday’s FOMC decision and comments from Fed Chairman Powell have raised the stakes on next weeks RBNZ decision and statement. Many are still calling for the RBNZ to cut rates next week and this combined with a fairly neutral U.S Fed, could place large selling pressure on the New Zealand Dollar. The RBNZ will announce its decision next Wednesday afternoon.
AUD Holding 70 Cents?
The Australian Dollar trades right around 70 cent support levels and will be at risk of a break lower if tonight’s U.S employment numbers are better than expected. Next week is a big week for the Aussie with Trade Balance data, Retail Sales numbers, and of course the latest decision on interest rates from the RBA, due out on Tuesday. The NZD/AUD cross rate is slightly higher this morning with the Kiwi holding its ground slightly better than the Aussie.
Bank of England Leaves Rates Unchanged
Following on from yesterday’s FOMC decision, the Bank of England have also left rates unchanged. The Pound was slightly lower as the Bank raised its growth forecasts but also warned that Brexit uncertainty continued to cast doubt on monetary policy outlook. Bank governor, Mark Carney, said interest rate increases would be required after a smooth Brexit as the bank is forecasting an increase in GDP growth.
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