24 Apr 2014
Asia Recap: RBNZ hikes rates, NZD flies higher
FXStreet (Bali) - The New Zealand Dollar was the best performer in Asia after the RBNZ, as expected, raised interest rates by another 25bp to 3% while retaining its hawkish bias.
NZD/USD reached its highest in 5 days at 0.8635 after the RBNZ not only raised rates, a decision entirely priced in by the market, but it also kept the rhetoric as hawkish as it had been in recent months, proving recent speculation of a less hawkish stance on lower CPI readings unfounded.
AUD/USD, meanwhile, continued to unwind what had become quite oversold conditions after the severe sell-off post the CPI miss, and after reaching its lowest for the week at 0.9268 in the last European session, buyers showed up in Asia to keep pressure against resistance at 0.93, well defended so far.
USD/JPY could not extend gains, with Wed's bounce off 102.15 finding plenty of supply at 102.50, which combined with the negative tone in the Nikkei 225 (-0.74%), took the rate as low as 102.23. Market sources reported 700M expiries noted at 102.50, which could keep the price not far from the area. Meanwhile, on the downside, stops are reported below 102.00/10.
The rest of G10 currencies were kept in tiny ranges ahead of the European session, in which a speech by ECB Mario Draghi and the German IFO indicator will be the key risk events ahead of core durable orders/jobless claims in the US.
Main headlines in Asia
RBNZ hikes rates to 3%, retains hawkish bias
RBNZ: Further hikes expected in June, July, Dec - Westpac
China CB Leading Economic Index climbed from previous 0.9 to 1.2 in March
Japan Corporate Service price index 0.7% as expected
Obama to "ramp up" sanctions if Russia violates Geneva talks
NZD/USD reached its highest in 5 days at 0.8635 after the RBNZ not only raised rates, a decision entirely priced in by the market, but it also kept the rhetoric as hawkish as it had been in recent months, proving recent speculation of a less hawkish stance on lower CPI readings unfounded.
AUD/USD, meanwhile, continued to unwind what had become quite oversold conditions after the severe sell-off post the CPI miss, and after reaching its lowest for the week at 0.9268 in the last European session, buyers showed up in Asia to keep pressure against resistance at 0.93, well defended so far.
USD/JPY could not extend gains, with Wed's bounce off 102.15 finding plenty of supply at 102.50, which combined with the negative tone in the Nikkei 225 (-0.74%), took the rate as low as 102.23. Market sources reported 700M expiries noted at 102.50, which could keep the price not far from the area. Meanwhile, on the downside, stops are reported below 102.00/10.
The rest of G10 currencies were kept in tiny ranges ahead of the European session, in which a speech by ECB Mario Draghi and the German IFO indicator will be the key risk events ahead of core durable orders/jobless claims in the US.
Main headlines in Asia
RBNZ hikes rates to 3%, retains hawkish bias
RBNZ: Further hikes expected in June, July, Dec - Westpac
China CB Leading Economic Index climbed from previous 0.9 to 1.2 in March
Japan Corporate Service price index 0.7% as expected
Obama to "ramp up" sanctions if Russia violates Geneva talks