RBNZ with a big surprise, CPI data in focus today

Frank Walbaum FX Strategies.Asia

Important news for the day:

Wed, 14th, 04:00 CET NZ Interest rate decision.
Wed, 14th, 14:30 CET US core consumer prices index.

US rate decision

Investors should get more clarity with fresh consumer prices index data from the US today. It is expected that the data will rise slightly today. However, recent words from Jerome Powell pointing out that a rate decrease might follow in September. Currently employment data shows that economic activity is currently falling. Comments from Fed member Raphael Bostic, however, state that still more incoming data would be needed before the Fed should act.

Market talk

Before the consumer price data today the USD has been losing more steam as traders anticipate the news this afternoon. Early this morning the Royal Bank of New Zealand had already started to reduce rates. This was not expected. The move sparked negative momentum in the Kiwi, which lost sharp momentum against other currencies. It was previously expected that the RBNZ will cut rates much later this year.

Tendencies in the markets

Equities positive, USD weak, cryptos positive, oil at resistance, metals positive, JPY weaker.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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