Talking Points:
- NZ Dollar Slumps as Markets Bet on Most Dovish RBNZ Outlook Since 2009
- Aussie Dollar Fails to Hold Gains After Comments from RBA DepGov Lowe
- US Dollar Corrects Higher After Dropping the Most in a Month Last Week
The New Zealand Dollar underperformed in overnight trade amid deteriorating RBNZ policy expectations. Priced-in bets reveal investors are leaning toward two 25 basis point rate cuts over the coming 12 months, making for the most dovish outlook since 2009.
The Australian Dollar saw a bit of a boost following remarks from RBA Deputy Governor Lowe, who hinted the central bank probably won’t cut the cash rate further in the near term.Gains proved short-lived however considering the message echoed the tone of the RBA’s latest policy statement, which have had ample time to be priced already.
The US Dollar launched a broad-based recovery, scoring gains against nearly all of the majors in a move that appeared corrective after the benchmark unit lost 1.04 percent last week, the most in a month. From here, the greenback will look to minutes from April’s FOMC meeting and April’s US CPI data (both due later this week) for direction cues.
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Asia Session
|
GMT |
CCY |
EVENT |
ACT |
EXP |
PREV |
|
22:30 |
NZD |
Performance Services Index (APR) |
56.5 |
- |
57.6 |
|
23:30 |
AUD |
RBA’s Lowe Gives Speech in Sydney |
- |
- |
- |
|
23:50 |
Machine Orders (YoY) (MAR) |
2.6% |
-6.0% |
5.9% |
|
|
23:50 |
Machine Orders (MoM) (MAR) |
2.9% |
1.5% |
-1.4% |
|
|
1:30 |
CNY |
April Property Prices |
- |
- |
- |
|
1:30 |
AUD |
New Motor Vehicle Sales (MoM) (APR) |
-1.5% |
- |
0.7% |
|
1:30 |
AUD |
New Motor Vehicle Sales (YoY) (APR) |
2.8% |
- |
4.6% |
|
4:00 |
Tokyo Condominium Sales (YoY) (APR) |
-7.6% |
- |
-4.0% |
|
|
4:30 |
Tertiary Industry Index (MoM) (MAR) |
-1.0% |
-0.5% |
0.4% |
|
|
4:30 |
BOJ Maeda Speaks at Panel Discussion |
- |
- |
- |
|
|
4:30 |
Capacity Utilization (MoM) (MAR) |
-1.2% |
- |
-3.2% |
|
|
4:30 |
Industrial Production (MoM) (MAR) |
-0.8% |
- |
-0.3% |
|
|
4:30 |
Industrial Production (MoM) (MAR) |
-1.7% |
- |
-1.2% |
European Session
|
GMT |
CCY |
EVENT |
EXP/ACT |
PREV |
IMPACT |
|
7:00 |
SNB Sight Deposits |
- |
- |
Low |
|
|
7:15 |
Retail Sales (YoY) (MAR) |
- |
-2.7% |
Medium |
|
|
13:45 |
ECB Publishes Asset-Purchase Data |
- |
- |
High |
Critical Levels
|
CCY |
Supp 3 |
Supp 2 |
Supp 1 |
Pivot Point |
Res 1 |
Res 2 |
Res 3 |
|
1.1128 |
1.1271 |
1.1361 |
1.1414 |
1.1504 |
1.1557 |
1.1700 |
|
|
1.5532 |
1.5639 |
1.5683 |
1.5746 |
1.5790 |
1.5853 |
1.5960 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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