NZ Dollar Advances On Fed Rate Cut Bets
The New Zealand dollar spiked up against its major counterparts
in the early European session on Thursday amid risk appetite, as
dovish remarks from the U.S. Federal Reserve Chairman Jerome Powell
reignited hopes of a U.S. rte cut later this month.
Powell said June's positive jobs report hasn't changed the Fed's
economic outlook and the central bank stands ready to "act as
Many analysts saw Powell's testimony as a clear endorsement for
a rate cut amid increased economic uncertainties and muted
When asked how large a cut could be made at the July 30 policy
meeting, Powell answered the FOMC will look at "a full range of
The June FOMC minutes also showed increasing support for
lowering rates amid increased economic uncertainties and muted
Data from Statistics New Zealand showed that New Zealand credit
card spending rose a seasonally adjusted 0.1 percent on month in
June, following a 0.2 percent increase in May.
Retail credit card spending was flat on month, missing
expectations for a gain of 0.7 percent following the 0.5 percent
decline in May.
The currency has been trading in a positive territory against
its major counterparts in the Asian session, excepting the yen.
The kiwi advanced to a 6-day high of 0.6671 against the
greenback, from Wednesday's closing value of 0.6644. If the kiwi
rises further, 0.68 is seen as its next resistance level.
Reversing from a low of 71.84 seen at 10:15 pm ET, the kiwi
edged higher to 72.08 per yen. The next possible resistance for the
kiwi is seen around the 73.00 mark.
Data from the Ministry of Economy, Trade and Industry showed
that Japan's tertiary activity declined in May after rebounding in
the previous month.
The tertiary activity index fell 0.2 percent month-on-month in
May, reversing a 0.8 percent rise in April. Economists had expected
a 0.1 fall.
The kiwi appreciated to a 3-day high of 1.6898 against the euro,
compared to 1.6930 hit late New York Wednesday. On the upside, 1.67
is possibly seen as the next resistance for the kiwi.
Final data from Destatis showed that Germany's consumer price
inflation accelerated as initially estimated in June.
Consumer prices advanced 1.6 percent year-on-year in June,
faster than the 1.4 percent increase in May.
The kiwi held steady against the aussie, after having advanced
to a 9-day high of 1.0455 at 2:15 am ET. At yesterday's close, the
pair was worth 1.0471.
Looking ahead, at 7.30 am ET, the European Central Bank releases
the accounts of the monetary policy meeting of the governing
council held on June 5 and 6.
Canada new housing price index for May, U.S. weekly jobless
claims for the week ended July 6, consumer price index and monthly
budget statement for June are due in the New York session.
Federal Reserve Chairman Jerome Powell will testify on the
Semiannual Monetary Policy Report before the Senate Banking
Committee in Washington DC at 10:00 am ET.
At 1:30 pm ET, Federal Reserve Governor Randal Quarles will
deliver a speech about financial regulation and monetary policy at
an event hosted by the Bipartisan Policy Center in Washington
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