Daily Alert: Thursday 11th August 2016

Mark NugentAug 2016, Daily Alert

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Economic Calendar

RBNZ cuts rate by 25 basis points to a record low of 2.00% as expected and said monetary policy will stay accomodative and that their forecasts indicate that further easing will be required. Governor Wheeler also said that the NZDUSD needs to decline. Assistant Governor McDermott stated that one more rate cut is likely, and maybe more. He gave no timescale but said November was an opportunity to re-assess the situation. The US Dept of Energy announced oil inventories rose by 1.1M barrels against an expected fall of 1.3M barrels.

Market Reaction

Stock markets were down or flat. US, German and UK bond prices rose, with the UK making the third consecutive daily all-time low in yield. Oil fell below USD 42/barrel and moved away from the 200 MA line on the US inventory number. Emerging Markets currencies and equities continue to rise.

Media

A light news day. Mention of NZD strength.

Forex Indexes

The USD dips. GBP lowers close to support. CAD back at support. AUD hits resistance. NZD rising after rate cut.

Forex Major Pairs

EURUSD – hitting resistance within the larger channel.
USDJPY – moving close to short-term resistance.
GBPUSD – rose during the day then closed flat.
EURJPY – sideways.
EURGBP – moves to short-term resistance.
GBPJPY – moves down but resistance still some way off.

The NZDUSD soars to high not seen since May 2015.

Today

Equities are all slightly up or flat as of 0800 BST. Later today we have US Unemployment Claims and NZ Retail Sales.

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