US Markets

Forex Daily Recap – RBNZ Surprised the Kiwi Investors with a 25 bps Interest Rate Cut

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NZD/USD

The Kiwi pair fell more than 1.1% following the RBNZ Rate Statement. The Central Bank surprised the market by cutting the interest rates from 1.75% to 1.50%. That’s a straight slice of around 25 basis points. Following the sudden rate cut, the pair slumped from 0.6602 levels reaching near 0.6527 levels. The Kiwi pair had last touched this lowest vicinity in October 2018. The NZD/USD pair had opened up today near 0.6596 levels and was trading in the NA session near 0.6575 levels. The Bank Officials mentioned that a rate cut was needed to give an impetus to employment and inflation outlook figures. The Bank took this initiative to lift the deteriorating New Zealand economy.

NZDUSD 60 Min 08 May 2019

USD/CNY

Today, the USD/CNY pair opened near 6.7734 levels. The pair hovered near 6.7720 levels during 08:00 GMT. Further, the pair moved upwards and marked fresh high for the day near 6.7836 levels. Notably, the pair had managed to sustain in the top levels. The afternoon session recorded another high near 6.7844 levels. At 15:15 GMT, the USD/CNY pair had dropped and was trading near 6.7829 levels. The Chinese Imports and Exports for April got released in the morning session. The YoY Imports came out as 10.3% while the YoY Exports reported around 3.1%. Though the consensus hoped negative figures for these Chinese economic data, the actual reports came out positive. The pair kept fluctuating near 6.7720 levels amid escalating US-Sino trade tensions and positive Chinese data.

EUR/USD

EURUSD 60 Min 08 May 2019

The Fiber was trading near 1.1187 levels at 16:24 GMT where it had begun during the day. The pair showcased some high swing movements in the mid-session. Following a plunging US Dollar Index, the EUR/USD pair had even knocked 1.1214 levels today. The pair went up marking day’s high near the same robust levels. The EUR/USD pair received tremendous support from positive German events. The March MoM Industrial Production figures reported a positive 0.5% over the estimates of a negative 0.5%.

The pair remained subdued in the middle of the on-going US-Sino trade tensions. The Fiber investors also fear of the EU-US trade disputes. ECB President Mario Draghi commented today that the nominal wages were increasing. However, Draghi added that the investors had left it apathetic. Meantime, the Greenback remained almost unchanged during the day. Fed President Barkin, in his speech,  argued that there remained lesser chances of a recession.

USD Index

The Greenback marked the start of the day near 97.51 levels. The Index experienced 15 pips downshift in the early morning session. And, further crawled above reaching around 97.66 levels. The index impressively recovered during the European session.

The news of the trade war between the U.S. and China throttled the pair’s growth in the first session. However, Donald Trump taunted China through new tweets today. He mentioned that Chinese negotiators were dragging out of the Trade talks. He also referred that some Chinese democrat insisted on keeping tariffs on Chinese export rather than negotiating a trade deal. This reaction alluded the USD index to crop up over Trump’s statement. On the events front, there were no significant events to impact profoundly over the USD. Meanwhile, the Fed’s Brainard’s mentioned a positive economic outlook, and the EIA reported lesser weekly crude inventories numbers.

This article was originally posted on FX Empire

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