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Forex Flash: RBA surprises - OCBC Bank

FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that the majors put in a mixed showing against the dollar on Tuesday with the AUD (and NZD) sabotaged by the RBA’s surprise rate cut and trailing across G10 space.

Elsewhere, he sees that NZD remained under pressure in late trade after the RBNZ reiterated its concern towards the potential for the exchange rate to continue appreciating on the back of interest rate hike expectations. On other fronts, the EUR was underpinned by significantly better than expected German March factory orders and a good showing at a Portuguese bond auction but the pair ultimately relinquished intra-day gains. Regarding the RBA, Ng comments that the central bank noted that its interest rate cut on Tuesday was afforded by the slightly more sanguine inflation outlook and we note that it was not motivated by renewed economic weakness. At this juncture, he feels that markets are pricing in a further rate cut over the summer although he notes that the accompanying statement did not explicitly infer any intent to cut further from here. He writes, “Essentially, we think the RBA remains data dependent for now (i.e., neutral) but market expectations of a dovish posture may instead keep the AUD under pressure in the near term."

Forex: USD/CHF bounces off lows to trade at 0.9387/90 after Swiss CPI

The USD/CHF has been in a slight recovery mode Wednesday, having bottomed out at the 0.9376 level in European trading. This mark proved to be a session low however, and with the near triggering of support, the pair found new life and has moved back higher to the 0.9387/90 mark in these moments following downtrodden Swiss data.
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Forex Flash: What can we do with the EUR/USD? – Commerzbank and UBS

The bloc currency is making its way through the 1.3100 handle on Wednesday, as markets remain risk-friendly so far after the upbeat data from the Chinese trade surplus. Ahead in the day, German...
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