RBNZ: Staunchly Neutral – TDS

Sandeep Kanihama FXStreet Contributor

The RBNZ kept the cash rate on hold at 1.75% as expected as NZ rates and FX markets are little changed, reflecting the Banks’ firmly neutral rate outlook, explains the analysis team at TDS.

Key Quotes

“The Bank is firmly focused on offshore developments so until Spencer takes the RBNZ reins, the odds of a change in bias towards a hint of hawk are low.”

“The NZ forwards rate curve is steep and with the RBNZ not hawkish, this should see ongoing interest to receive rates via the forwards.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold stays bid, still below $5,100

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.