The RBNZ held rates steady, leading to a surge in the Kiwi, while the Greenback was under early pressure following Trump's Tuesday speech...
It was a relatively busy economic calendar through the Asian session this morning.
Key stats included November consumer confidence and 3rd quarter wage growth figures out of Australia.
On the monetary policy front, the RBNZ delivered its final interest rate decision of the year.
On the geopolitical risk front, Trump’s speech at the Economic Club in New York on Tuesday night tested risk appetite and the Greenback.
While stating that the U.S was close to an interim deal with China, Trump also stated that the U.S would substantially raise tariffs if Beijing does not agree with America’s trade terms.
The Westpac Consumer Sentiment Index rose by 4.5%to 97.0 in November, partially reversing a 5.5% slide in October.
According to the Westpac report,
The Aussie Dollar moved from $0.68415 to $0.68431 upon release of the figures, which preceded 3rd quarter wage growth numbers.
Wage growth rose by 0.5% in the 3rd quarter, which was in line with forecasts. In the 2nd quarter, wage growth had risen by 0.6%.
According to the ABS,
The Aussie Dollar moved from $0.68370 to $0.68307 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.13% to $0.6850.
The RBNZ left rates unchanged at 1.0% in the final interest rate decision on the year. The markets had been mixed on what was to come.
According to the RBNZ rate statement,
The Kiwi Dollar moved from $0.63361 to $0.64149 upon release of the rate statement and monetary policy statement. At the time of writing, the Kiwi Dollar was up by 1.25% to $0.6410. Next up, is the RBNZ press conference.
At the time of writing, the Japanese Yen was up by 0.08% to ¥108.92 against the U.S Dollar, while
It’s another relatively busy day ahead on the economic calendar. Key stats due out of the Eurozone include finalized October inflation figures out of Germany and the Eurozone’s September industrial production numbers.
We would expect the industrial production figures to have the greatest influence on the day.
Outside of the numbers, we can expect the markets to shift focus to FED Chair Powell’s testimony later today, which will influence.
At the time of writing, the EUR was up by 0.04% to $1.1013.
It’s yet another busy day ahead on the data front. Key stats include October inflation figures that will provide the Pound with direction.
Expect any weak numbers to weigh heavily on the Pound following 2 MPC members voting in favor of a rate cut last week.
On the geopolitical risk front, UK politics will continue to grip the Pound, with the opinion polls key for now.
At the time of writing, the Pound was up by 0.09% to $1.2856
It’s a relatively busy day on the economic calendar. Economic data out of the U.S include October inflation figures.
While we can expect the Dollar to respond to the numbers, any moves will likely be short-lived as the markets look ahead to FED Chair Powell’s testimony.
The Dollar and the U.S major indexes will be in the hands of the FED Chair late in the day. Following the pickup in service sector activity in October, according to the ISM numbers, Powell could be on the optimistic side. Particularly as the U.S and China edge closer to a phase 1 agreement.
The Dollar Spot Index was down by 0.01% to 98.298 at the time of writing.
It’s another quiet day on the economic calendar. There are no material stats due out of Canada to provide the Loonie with direction.
Market risk appetite and crude oil inventories will provide direction throughout the day.
The Loonie was down by 0.04% to C$1.3238, against the U.S Dollar, at the time of writing.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.