- RBNZ hikes interest rates by 0.25%, not done with tightening
- RBNZ Wheeler: Inflationary pressures likely to remain strong
- Nikkei posts 0.64% loss for the day
- Australia loses 4.8K jobs in May, jobless rate steady at 5.8%
- Australia’s MI inflation expectations down from 4.4% to 4.0%
The Kiwi took center stage in today’s Asian trading session, as the RBNZ’s decision to hike interest rates by another 0.25% pushed NZD/USD up by more than a hundred pips and NZD/JPY to a high of .8840. EUR/NZD fell to a low of 1.5628 while AUD/NZD is edging closer to 1.0800.
According to RBNZ Governor Wheeler, the prospect of stronger inflationary pressures was enough to convince policymakers to implement another rate hike. He also went on to say that they might keep tightening monetary policy in order to keep price gains at bay.
As for Australia, its jobs report came in mostly weaker than expected. The economy lost 4.8K jobs in May while the April figure was revised down to show a 10.3K gain in hiring versus the initially reported 14.2K increase. Despite that, the jobless rate managed to hold steady at 5.8% instead of rising to the estimated 5.9% figure.
In the next few hours, we’ll see euro zone’s industrial production figure, which might show a 0.5% rebound and allow the shared currency to take a break from its ongoing selloff. A weaker than expected result, however, could lead to more euro losses. No other major reports are lined up for the London session, which means that we might see a bit of consolidation among GBP/USD and EUR/USD leading up to the U.S. retail sales release later on.
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!