Check out the daily Technical and Fundamental analysis of the day.
This article is originally referred from IronFX News.
RBNZ remains on hold, NZD weakens
- RBNZ remained on hold at +1.75% and market reaction was rather muted upon release as the decision was widely expected.
- The accompanying statement had a neutral to dovish tone with main elements being the preservation of an accommodating monetary policy, the acknowledgement of increased trade tensions and the comment about a weaker GDP growth rate.
- Analysts point out, that probabilities for the bank’s next move to be a rate cut have risen, adding to the bearish sentiment.
- We could see the Kiwi weakening in the aftermath of the decision given the accommodating monetary policy preservation.
USD gains amidst confusion
- USD gained yesterday amidst confusion regarding the US-Sino trade war issue.
- The confusion was provided by statements by a number of officials, as no clear path was given for new US regulations regarding acquisitions of US high tech companies by foreign investors.
- However, the opinion that some kind of control over foreign investments in the US will be imposed, seems almost certain.
- The USD seems to be taking advantage of the confusion and should there be little to no negative headlines we could see it strengthening even further.
Original Source: IronFX News