- RBNZ official said lending limits might be removed as rates rise
- China reported slower industrial profit growth
- UK retail sales to show 0.5% rebound?
Uh oh, it looks like the Greenback still ain’t gettin’ any love from forex traders today! EUR/USD slowly edged to a high of 1.3798 while USD/JPY dipped to a session low of 101.72. The Aussie and Kiwi chalked up larger gains, with AUD/USD climbing past the .9200 handle and NZD/USD surging above .8600.
The latest trade balance release from New Zealand did very little to boost NZD/USD, as the currency pair later on drew support from an RBNZ official’s comments. According to Deputy Governor Grant Spencer, the central bank might remove lending limits as interest rates rise. The mere prospect of further rate increases was enough to bring Kiwi bulls back in action!
The Australian dollar also capitalized on this upbeat announcement, as the possibility of easier lending conditions in New Zealand could eventually spur demand for Australian products and business investment. The Aussie barely reacted to a report that showed lower industrial profit growth in China.
Up ahead, we have the UK retail sales release which might show a 0.5% rebound in consumer spending. Hiring conditions have improved in the UK recently and most market watchers are hoping to see an upside surprise. Data on euro zone money supply and private loans is also due but this might not have such a huge impact on EUR/USD price action. Do stay tuned for any events that could affect risk sentiment though!
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