It was a fairly eventful session in the FX space with the RBNZ’s dovish shift putting pressure on the NZD across the board.
- Implied volatility levels for GBP pairs ahead of the UK CPI data
- Secretary Bessent eyes stablecoins as next big buyer of Treasuries
- What are analysts expecting from today’s UK CPI data
- RBNZ’s Hawkesby signals more cuts ahead, data-dependent pace
- Biggest changes in the RBNZs August policy report
- AUDNZD testing higher timeframe resistance after RBNZ
- China to showcase military strength with new hypersonic weapons at parade
- EURNZD breaks above 1.9900 after dovish RBNZ
- NZD tumbles after RBNZ sizeable OCR downgrade and discussions of a 50bp cut
- Reserve Bank of New Zealand (RBNZ) cuts rates by 0.25% as expected
- PBOC sets USD/ CNY mid-point today at 7.1384 (vs. estimate at 7.1897)
- WSJ saying Musk is pumping the brakes regarding the new political party
- PBOC’s Loan Prime Rates unchanged: 1 year 3%, 5 year 3.5%
- PBOC is expected to set the USD/CNY reference rate at 7.1897 – Reuters estimate
- Goldman cuts near-term US gas forecasts, stays bullish on 2026 outlook
- Implied volatility levels for NZD pairs ahead of the RBNZ
- Japan Exports YY -2.6% vs -2.1% expected
- Japan Machinery Orders YY 7.6% vs 5.0% expected
- China and India agree to restart dialogue mechanisms, stress border management
- US Treasury chief Bessent upbeat on China talks, economy, and possible Budapest summit
- Preview for the RBNZ policy decision
- Trump says Zelenskiy-Putin meeting being arranged
- Economic Calendar for 20 Aug 2025
- ANZ scenario planning for today’s RBNZ
- Syria and Israel hold US-mediated talks in Paris on regional stability
- North Korea’s Kim Yo Jong dismisses South Korea as diplomatic partner
- Risk off day for tech with treasuries & USD catching a bid
- Trump, Orban discussed Ukraine’s EU talks and possible Budapest summit site
- Oil private survey of inventory showed headline crude draw of -2.4MLN vs -1.2MLN expected
- Mexico to propose reinstating North American steel committee with US
Risk sentiment picked up where it ended yesterday, with risk-off sentiment spilling over into today’s Asia-Pac session as well. The moves were nowhere as dramatic as we saw yesterday, but equities have remained pressured, while safe haven FX leads and high beta FX has stayed pressured.
The main event for the Asia-Pac session was the RBNZ decision, where the bank took a dovish tilt by lowering the OCR to 2.5% ito accompany two more cuts.
The reason for the bank’s dovish shift comes from concerns about growth, output and the labour market, despite projecting a higher level of inflation compared to May. The minutes of the meeting also showed that the bank actively discussed the possibility of a 50 basis point cut, with two members voting for a 50bp cut as well.
The statement and minutes saw immediate pressure in the NZD, with the NZDUSD trading down towards 0.85200 (its lowest levels since April).
In other markets, things were calmer, with all eyes firmly set on Friday’s Jackson Hole symposium.
The main highlights for later today is UK CPI due early in the EU session, followed by Final HICP data for Europe, as well as the FOMC meeting minutes due later in the US session.
This article was written by Arno V Venter at investinglive.com.