Kicking off the session is a speaker from the RBA at 8.55 am Sydney time (which is 2155 GMT and 1655 US Eastern time on Monday, 12 February).
A little later will be further inflation information from the Reserve Bank of New Zealand. The RBNZ is clearly worried about sticky inflation, well above target:
- RBNZ Gov Orr says inflation remains too high, that’s why we’ve kept the cash rate at 5.5%
- RBNZ’s Hawkesby says the New Zealand financial system remains strong
So much so that ANZ is reading between the lines and tipping a further 50bp of rate hikes:
- ANZ are expecting the RBNZ to hike its cash rate in February and in April, to 6%
- NZDUSD moves higher helped by ANZ call for higher rates
If the RBNZ is worried enough to hike again, proving ANZ correct, I do wonder about the wider implications of market pricing for rate cuts from other central banks, this is a dominant narrative at present and if it goes away there will be more than a shudder right across bonds, stocks and FX. With an ounce of luck it’s a local NZ affair and will not have wider implications. But luck is a fickle thing to rely upon.
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Anyway, back to today. China remains out on holidays (and will be all week). Hong Kong markets are closed again today for a holiday.
And, remaining on today, I suspect moves here in the region will be subdued as we await the CPI data from the US later:
This snapshot from the ForexLive economic data calendar, access it here.
The times in the left-most column are GMT.
The numbers in the right-most column are the ‘prior’ (previous month/quarter as the case may be) result. The number in the column next to that, where there is a number, is the consensus median expected.
This article was written by Eamonn Sheridan at www.forexlive.com. Source