Forex Daily Recap – Kiwi Pair Soared +0.84% after RBNZ’s Rate DecisionAmid mixed US Goods Orders data, the Greenback attempted to breach the robust 96.33 resistance mark. French authorities shed light over Trump’s disinterest in having talks, to solve US-Iran dispute.
The uptrend in the Kiwi pair had triggered on June 21 near 0.6556 level. The positive trend had gone smoothly since then, until June 25, when the pair tried to move out of the trend channel. Anyhow, the bulls took the pickup in the morning session, bringing back the trend into action. Today, the RBNZ decided to keep the interest rates unchanged at 1.5%, in-line with expectations. The rationales behind keeping the rates lower was the rising global economic risks. The policymakers mentioned that the Bank might consider rate cuts in the near term, depending on the inflation and employment data.
“Given the tone of this statement from the RBNZ, we remain of the view that the RBNZ will most likely cut the OCR in August,” said Westpac Chief Economist Dominick Stephens. The NZD/USD pair marked the Daily/1-Week high near 0.6687 level.
The USD Index had opened up near 96.19 levels on Wednesday’s trading session. The Greenback remained intact with slight positive tone throughout the day, touching weekly high near 96.34 levels. Weaker German July Consumer Confidence Survey had taken the lead for the early morning downturn in the EUR/USD pair. This downfall in the Fiber had allowed the USD Index to initiate the day’s upward movements. The US May Durable Goods Orders recorded mixed reports this time. The Durable Goods Orders data came around -1.3% over -0.1% forecasts. Also, the Orders data that excluded Defense reported 0.8% lower than the 1.4% estimates. However, the most significant May Non-Defense Capital Goods Orders excluding Aircraft reported 0.3% higher than the market expectation. Notably, the Goods Orders reports that excluded Transportation data published above market hopes. In the middle of such mixed US data, the Greenback attempted to breach the robust 96.33 resistance level. Somehow, the gains remained capped under the same resistance mark for the USD Index. Despite that, the US Dollar Index continued to stay near its weekly highs.
During the day, the Cable continued to remain within 1.2664/1.2706 range levels strictly. The overall volatility remained low throughout the day amid lack of GBP-specific economic events. BoE Governor Mark Carney mentioned that the Bank would consider rate cuts to counter the risk of a No-Brexit deal.
“In the event that the policy of the government was to switch, the forecast of the Bank of England would switch accordingly,” Carney told lawmakers on Wednesday. However, investors have already started betting on a nearby rate cut considering the global economic slowdown as well as Brexit chaos. Meanwhile, Johnson and Hunt, said earlier that they would try their best to negotiate with the EU to come up with a deal. On the other hand, the positive trending USD Index kept the negative pressure intact on the pair’s movements.
The Loonie pair got slammed to a three-month bottom as Crude prices soared to a 27-day high. The USD/CAD pair had already broken the sound 1.3110 resistance level, last touched on February 27. The Oil prices jumped 1.87% after the release of upbeat EIA Crude Inventory data. The Crude Stocks Change computed since June 21 reported -12.788 million over -2.540 million forecasts. This data revealed the rising demand for the commodity and thereby the prices to quote near $59.90 bbl. In the meantime, French authorities shed light over Trump’s disinterest in having talks, to solve US-Iran dispute. When asked about France’s participation in the anti-Iran coalition, the authorities replied, “We have our own goals… our own interests,”