NZ Dollar Rises After RBNZ Holds Rate
April 09 2024 - 11:40PM
RTTF2
The New Zealand dollar strengthened against other major
currencies in the Asian session on Wednesday after New Zealand's
central bank left its benchmark rate unchanged for the sixth
straight session as widely expected, as higher rates help to bring
inflation to the target range.
The Monetary Policy Committee of the Reserve Bank of New
Zealand, governed by Adrian Orr, decided to hold the Official Cash
Rate at 5.50 percent.
Traders remain cautious ahead of the release of closely watched
key U.S. inflation data, which could have a significant impact on
the outlook for interest rates.
The inflation data could have a significant impact on the
outlook for interest rates, as U.S. Fed officials have repeatedly
said they need greater confidence that inflation is slowing before
cutting rates.
Wednesday will also see the release of the minutes of the Fed's
latest monetary policy meeting, which could also shed additional
light on officials' thinking on rates.
In the Asian trading today, the NZ dollar rose to more than a
3-week high of 1.7858 against the euro and an 8-day high of 1.0897
against the Australian dollar from yesterday's closing quotes of
1.7913 and 1.0936, respectively. If the kiwi extends its uptrend,
it is likely to find resistance around 1.77 against the euro and
1.07 against the aussie.
Against the U.S. dollar and the yen, the kiwi advanced to near
3-week highs of 0.6079 and 92.25 from Tuesday's closing quotes of
0.6059 and 91.96, respectively. The kiwi may test resistance around
0.62 against the greenback and 93.00 against the yen.
Looking ahead, U.S. mortgage approvals data, Canada building
permits for February, U.S. CPI data for March, Wholesale
inventories for March and U.S. EIA crude oil data are due to be
released in the New York session.
At 9:45 am ET, Bank of Canada will announce its key policy
interest rate and Monetary Policy Report. The bank expects the key
policy interest rate to remain unchanged at 5 percent.
At 12:45 pm ET, Federal Reserve Bank of Chicago President Austan
Goolsbee will participate in panel before the Social Finance
Institute, in Omerville, France.
At 2:00 pm ET, Federal Open Market Committee issues minutes from
its meeting of March 19-20, 2024. At the same time, the U.S.
Federal budget balance report for the month of March is also due to
be released.
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