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Forex Today: Kiwis down thanks to RBNZ's dovish tilt

Forex Today: Kiwis down thanks to RBNZ's dovish tilt

The New Zealand dollar fell about 1% against a basket of currencies after the RBNZ released a statement with less hawkish rhetoric on inflation.

➡️ The New Zealand dollar, which has recently reached long-term highs against the Japanese yen as one of the strongest major currencies , fell following the Reserve Bank of New Zealand's less aggressive rhetoric on inflation, leading markets to believe there will now be a realistic prospect of rate cuts. The RBNZ currently has the interest rate highest among all major currencies, equal to 5.50%.

➡️ Australian CPI (inflation) data released a few hours ago showed inflation falling less than expected, remaining at 3.4% when consensus forecasts had called for a rise to 3.6%. This sent the Australian dollar lower against all major currencies except the Kiwi.

➡️ Global stock markets are mixed, with several indexes still looking bullish but which do not reach new highs. The only major index that hit a new all-time high yesterday was the Nikkei 225 index.

➡️ In the Forex market, the US dollar has been the strongest major currency since Tokyo opened today. The New Zealand dollar was the weakest. This puts the spotlight today the NZD/USD currency pair  .

➡️ Bitcoin  is advancing strongly towards new long-term price highs above $ 57,000 after making a bullish breakout above $ 52,884 a couple of days ago following the end of its consolidation. Trend traders and investors will remain interested in Bitcoin on the Long side.

➡️ Cocoa futures  they rose strongly two days ago, marking a new all-time high, but yesterday they made a bearish retracement. Trend traders will be watching closely and will be interested in going long. Cocoa futures have risen by more than a third since the start of 2024 alone.

➡️ Impactful economic data will be released later today, namely preliminary US GDP data, which is expected to show unchanged annualized economic growth at 3.3%.

➡️ The additional data released yesterday was:

  • US durable goods orders, lower than expected, show a month-on-month decline of 6.11TP3Q.
  • US CPI consumer confidence came in lower than expected. This data suggests that the United States may be cooling more than expected.

 

Credit by DailyForex.com

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