The big move of the Asian session was very early on indeed, as the Royal Bank of New Zealand cut rates by 150 basis points, 50 basis points greater than most predicted, to 3.50%, the lowest rate on record for New Zealand. The NZD/USD pair's reaction was immediate and brutal, as the pair went from 0.5372 highs just prior to the data release, to bottom out at 0.5186 with in an hour. The pair did bounce from there, perhaps 60 pips, but it was the proverbial ''dead cat bounce'', as the pair subsequently got as low as 0.5146. As could be expected, AUD/NZD exploded through the session, hitting a six month high, starting near 1.2500 and ending the session near the 1.2787 highs. Be aware that the RBA will meet early next week, and the expectations are for a cut of 100 basis points to put Australia's rate at 3.25%.
Throughout the rest of Asia, we saw EUR/USD continue to lose ground, although the pair was comfortable pre FOMC today in NY at 1.3260 levels, the pair opened the session near 1.3178, and slowly eroded to levels just near the 1.3100 figure. EUR/JPY lost luster as well today, falling from pre lunch highs of 119.29 to break through a 117.70 bottom later in the day. USD/JPY dropped off today on waves of profit taking, as the pair hit early highs near 90.65 and then slid to just near 89.70 through a bunch of technical levels. The pair hovered near 89.90 near the turn to European trading. Later be aware of German employment as well as Euro Zone Consumer Confidence.
Upcoming Economic Data Releases (London Session):
| 1/29/2009 | 7:00 | UK | Nat'wide House prices sa (MoM) | JAN | -2.50% | -1.70% |
| 1/29/2009 | 7:00 | UK | Nat'wide House prices nsa(YoY) | JAN | -15.90% | -16.70% |
| 1/29/2009 | 8:55 | GE | Unemployment Change (000's) | JAN | 18K | 30K |
| 1/29/2009 | 8:55 | GE | Unemployment Rate (s.a) | JAN | 7.60% | 7.70% |
| 1/29/2009 | 10:00 | EC | Business Climate Indicator | JAN | -3.17 | -3.5 |
| 1/29/2009 | 10:00 | EC | Euro-Zone Consumer Confidence | JAN | -30 | -31 |
| 1/29/2009 | 10:00 | EC | Euro-Zone Economic Confidence | JAN | 67.1 | 65.4 |
| 1/29/2009 | 10:00 | EC | Euro-Zone Indust. Confidence | JAN | -33 | -34 |
| 1/29/2009 | 10:00 | EC | Euro-Zone Services Confidence | JAN | -17 | -18 |
