FX News

FX Update: Risk Improves

Market Overview

• NZ Net migration continues to improve from February 2022’s low of -19,000, net migration in March was a healthy 65,000.
• Currency crosses are up overnight after the strong US Dollar rally from Friday.
• G7 countries plan to ban the restart of Russia’s gas imports on the same routes where they previously cut supplies.
• Talk of the Fed has finished hiking interest rates may lead equity markets higher.
• Westpac are suggesting the RBNZ will raise rates to 6.0% and retain until mid-2024.
• Argentina raises cash rate 600 points to 97%
• Canada April housing starts 262k vs 220k predicted with immigration strong and builders going back to work.
• Japanese machine Rodgers down 14.4% y/y, a small improvement on the earlier 15.2% slide.
• The US Dollar (USD) has been the best performer the past week while the New Zealand Dollar (NZD) has been the worst performing currency.

Major Announcements last week:
US CPI y/y 4.9% in April down from 5.0%
Australian unemployment rate 3.5% from 3.6%
UK GDP m/m 0.0 vs 0.1% forecast
Bank of Canada cash rate unchanged at 4.50%

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