- RBNZ cut interest rates from 3.25% to 3.00%
- Forex analysts say RBNZ is less dovish than before
- Japanese trade deficit widened from 0.16T JPY to 0.25T JPY as expected
- Australia’s NAB quarterly business confidence index up from 0 to 4
- U.K. retail sales data up for release
Even with the RBNZ’s decision to cut interest rates from 3.25% to 3.00%, Kiwi bears seemed hesitant to push the currency lower against its forex rivals in today’s Asian trading session. NZD/USD is actually up 55 pips (+0.84%), NZD/JPY advanced by 62 pips (+0.76%), and AUD/NZD is down 74 pips (-0.66%). What’s that all about?!
A lot of traders have probably seen Forex Gump’s hints about an RBNZ cut and priced in their expectations way ahead of the actual event, spurring profit-taking during the official announcement earlier today. Apart from that, some market watchers say that the RBNZ statement wasn’t as dovish as expected and it was also less downbeat compared to their previous policy bias. In particular, Kiwi traders zoomed in on the removal of the words “unjustified and unsustainable” when it comes to discussing the currency’s exchange rate levels.
Over in Australia, the NAB quarterly business survey reflected an improvement in confidence, as the index climbed from 0 to 4 in Q2. This did very little to spur Aussie rallies, though, as AUD/USD is moving sideways around .7375 (+0.01%) and AUD/JPY is holding on to the 91.50 mark (+0.03%).
Up ahead, forex traders could turn their attention to pound pairs, as the U.K. is gearing up to print its latest retail sales figures. Analysts are expecting to see a 0.4% gain for June, higher than the previous 0.2% uptick logged in May. Stronger than expected data could mean more gains for the pound so if you’re looking to trade this event, you should check out this nifty Forex Trading Guide. Also lined up is the Spanish unemployment rate release, which could show a drop from 23.8% to 22.8% in Q2 and possibly give the euro a bit of a boost.
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