New Zealand Dollar Slumps as Interest Rate Expectations Deteriorate
- 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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|22:30||NZD||Performance Services Index (APR)||56.5||-||57.6|
|23:30||AUD||RBA’s Lowe Gives Speech in Sydney||-||-||-|
|23:50||JPY||Machine Orders (YoY) (MAR)||2.6%||-6.0%||5.9%|
|23:50||JPY||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||JPY||Tokyo Condominium Sales (YoY) (APR)||-7.6%||-||-4.0%|
|4:30||JPY||Tertiary Industry Index (MoM) (MAR)||-1.0%||-0.5%||0.4%|
|4:30||JPY||BOJ Maeda Speaks at Panel Discussion||-||-||-|
|4:30||JPY||Capacity Utilization (MoM) (MAR)||-1.2%||-||-3.2%|
|4:30||JPY||Industrial Production (MoM) (MAR)||-0.8%||-||-0.3%|
|4:30||JPY||Industrial Production (MoM) (MAR)||-1.7%||-||-1.2%|
|7:00||CHF||SNB Sight Deposits||-||-||Low|
|7:15||CHF||Retail Sales (YoY) (MAR)||-||-2.7%||Medium|
|13:45||EUR||ECB Publishes Asset-Purchase Data||-||-||High|
|CCY||Supp 3||Supp 2||Supp 1||Pivot Point||Res 1||Res 2||Res 3|
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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