FX News

FX Update: Kiwi Reverses Lower

Market Overview

Key Points:

• Poor Chinese data suggests the Peoples Bank of China should cut rates (RRR) “Reserve Requirement Ratio” to support the economy.
• Goldman Sachs are suggesting the chances of a US recession over the next 12 months is less than 20%
• The International Monetary Fund says the inflation seems to have peaked.
• The Australian Treasurer Chalmers expects a substantial downturn in the Australian market with CPI to track lower while unemployment to go higher.
• The Euro (EUR) is the strongest performer over the past week with the US Dollar (USD) Dollar the worst performer.

Major Announcements last week:
Chinese y/y CPI y/y 0.0% vs 0.2% expected
RBNZ cash rate remained unchanged at 5.5%
US CPI y/y 3.0% vs .3.1% precdicted – previous 4.0%
Canadian Cash Rate unchanged at 5.0%
UK GDP m/m growth -0.1% vs -0.3% predicted

Previous ArticleNext Article