NZ Dollar Rises As Traders Focus On Fed Rate Outlook
August 19 2024 - 11:20PM
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The New Zealand dollar strengthened against other major
currencies in the Asian session on Tuesday, as traders looked ahead
to the release of July FOMC minutes and Fed Chair Jerome Powell's
speech at the Jackson Hole Symposium for clues on the outlook for
interest rates.
The People's Bank of China kept its benchmark loan prime rate
unchanged following a surprise cut in July. The PBOC kept its
one-year loan prime rate unchanged at 3.35 percent. Similarly, the
five-year LPR, the benchmark for mortgage rates, was retained at
3.85 percent.
Investors also analyzed minutes of the Reserve Bank of
Australia's August meeting.
Markets expect that the Federal Reserve will soon signal that it
is willing to start cutting interest rates.
In the Asian trading today, the NZ dollar rose to more than a
1-month high of 0.6126 against the U.S. dollar and nearly a 3-week
high of 90.18 against the yen, from yesterday's closing quotes of
0.6113 and 89.60, respectively. The NZD/USD and NZD/JPY pairs may
test resistance around 0.62 against the greenback, 94.00 against
the yen, respectively.
Against the euro and the Australian dollar, the kiwi advanced to
a 6-day high of 1.8091 and a 5-day high of 1.0974 from yesterday's
closing quotes of 1.8131 and 1.1011, respectively.
If the kiwi extends its uptrend, it is likely to find resistance
around 1.79 against the euro and 1.08 against the aussie.
Looking ahead, Eurozone CPI data for July and current account
figures for June are due to be released in the European
session.
In the New York session, Canada CPI data for July and U.S.
Redbook report are slated for release.
NZD vs Yen (FX:NZDJPY)
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NZD vs Yen (FX:NZDJPY)
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