Asia-Pacific news roundup: RBNZ surprises with a hold, but the market surprises as well
On August 18, 2021, the following forex news will be released for Asia-Pacific trading:
In the run-up to the RBNZ decision, it was a boisterous session. Uncertainty was at an all-time high after a covid case yesterday, followed by six additional instances and a lockdown today, placed a nearly-certain rate hike into complete doubt.
The NZD had moved up off the 0.6900 floor ahead of the decision, possibly due to some position squaring, but then the news came and it plunged through the July low to the lowest levels in nine months. However, there were not the expected stops, and after hitting a low of 0.6865, it rose back above 0.6900.
What could potentially sink this pair if the Kiwi doesn’t sustain a break below 0.6900 on a surprise rate decision, 5 new covid cases, and the top health official saying they expect 50-100 cases?
Orr then spoke, striking a supremely confident tone and describing the rate stoppage as a blip. His comments on housing, as well as comparable words in the statement, aroused some concerns, but he was overwhelmingly bullish, sending NZD/USD to a session high of 0.6951 in a complete turnaround.
More broadly, morale is improving, with Japanese markets off to a great start, Treasury yields rising, and the yen falling across the board. So it is with the ebb and flow of the delta.
Markets News :
- Gold up $4 to $1790
- US 10-year yields up 1.4 bps to 1.27%
- WTI crude up 9-cents to $66.68
- Nikkei up 0.9%
- S&P 500 futures up 0.1%
- NZD leads, JPY lags