RBNZ’s first stress test suggests life insurers can overcome severe economic, geopolitical shocks

Anil Panchal FXStreet

Early Tuesday in Asia, the Reserve Bank of New Zealand (RBNZ) unveils the results of its first stress test for the life insurance industry while suggesting that the major players are well-placed to overcome the severe economic and insurance shocks, while continuing to pay out on policy claims, reported Reuters.

Following the official announcement, RBNZ Deputy Governor Christian Hawkesby said that the participating insurers were able to pay out substantial claims from policyholders and remain solvent during a hypothetical three-year scenario comprising a long COVID, a new pandemic and a period of severe economic stress.

NZD/USD stays unimpressive

Despite the price-positive news and the US Dollar’s failure to defend the week-start gains, the NZD/USD remains sluggish near 0.6100 by the press time as it challenges the two-day rebound amid Tuesday’s early Asian session. The reason could be linked to the market’s cautious mood ahead of China's trade balance.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.