The Reserve Bank of New Zealand (RBNZ) lowered the Official Cash Rate (OCR) by 25 basis points (bps) from 5.50% to 5.25%, following the conclusion of the August policy meeting on Wednesday. The market participants anticipated a rates on-hold decision. Summary of the RBNZ Monetary Policy Statement (MPS) Inflation is declining. Inflation returing into target…
The Mexican Peso makes gains against the US Dollar after the release of lower-than-expected US PPI inflation data. The data weakens the US Dollar and increase the probability of a 0.50% interest rate cut by the Fed in September. The Peso suffered after weak Mexican consumer confidence data and central banker comments weighed. US inflation…
The New Zealand Dollar trades flat in Tuesday’s early Asian session. Reduced bets for a RBNZ rate cut and signs of stronger demand from China supported the Kiwi. Rising Middle East geopolitical risks might limit the pair’s downside. The US Producer Price Index (PPI) will be in the spotlight on Tuesday before the RBNZ rate…
Gold continues to edge higher as fears of an escalation of the Gaza conflict and falling interest-rate expectations support the metal. US inflation data out this week could color expectations of the trajectory for interest rates. The precious metal is trading in an up leg within a sideways trend, with a risk it could extend…
AUD/USD slightly retreats, settling near 0.6575 on Friday. RBA reiterates its hawkish stance, contributing to a buoyant AUD. Investors digest Chinese inflation reported during the European session. The AUD/USD pair witnessed a minor setback at 0.6575 during Friday’s session, a modest descent of 0.30%. That being said, the Reserve Bank of Australia’s (RBA) unwavering hawkish…
Gold price remains broadly firm on multiple tailwinds on Friday. Investors are divided over the size of Fed rate cuts in September. Fed officials acknowledge the softening of inflation and slowing labor demand. Gold price (XAU/USD) rises to near $2,430 in Friday’s New York session. The precious metal’s near-term outlook remains firm on strong speculation that the Federal…
Gold price struggles to capitalize on the previous day’s strong rise of nearly 2%. The upbeat US labor market report underpins the USD and acts as a headwind. The risk-on impulse further caps gains, though Fed rate cut bets offer support. Gold price (XAU/USD) rallied nearly 2% on Thursday and snapped a four-day losing streak…
After a shaky Monday, the USD recovered, and Tuesday is unlikely to see much movement. Amid renewed market sentiment, US Dollar (DXY) gains and remains near the 103.00 mark. The market is pricing in a 100 bps rate cut by year-end. On Tuesday, the US Dollar (USD), measured by the DXY Index, is capitalizing on…
The Japanese Yen pulls back from six-month highs due to slowing unwinding of carry trades. The downside of the JPY could be limited due to increasing odds of further rate hikes by the BoJ. The US Dollar faces challenges from rising expectations of a 50-basis point rate cut by the Fed in September. The Japanese…
EUR/USD jumps to near 1.0900 as the US Dollar plunges after a weak US NFP report for July. US labor demand appears to have slowed significantly, with slower wage growth. The Euro fails to capitalize on increased doubts over market expectations for two more ECB rate cuts this year. EUR/USD climbs to near the round-level resistance of 1.0900 in…