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NZD Steady, Markets Await Chairman Powell Statement on Thursday

Published July 9, 2019

The NZ Dollar opens the day at similar levels to yesterday with overall market movements fairly subdued. A lack of major economic data to start the week sees markets in something of a holding pattern ahead of Fed Chairman Jerome Powell’s address to congress on Wednesday night.

USD Holds Gains on Reduced Rate Cut View

The US Dollar was steady across the board holding on to gains made on the back of Fridays non-farm payrolls data. The better than expected number has effectively priced out the likelihood of a 0.50% cut in interest rates in July, however a 0.25% cut remains almost fully priced in.
Focus this week turns to Fed Chairman Jerome Powell who is expected to provide further clues on the near-term outlook for monetary policy this week at his semi-annual testimony to the US Congress. Meanwhile, markets are still keeping an eye on US-China trade talks, which are expected to resume this week.

In other news, ECB governing council member, Benoit Coeure, said that the ECB could restart quantitative easing if needed, however, he indicated that they are not yet united on when or how to act.