InvestingLive Asia-Pacific FX news wrap: US dollar loses ground, Kiwi $ leads

Forex Short News

The New Zealand dollar led gains in FX trade today, rising against the U.S. dollar after labour force data came in slightly weak but broadly in line with Reserve Bank of New Zealand (RBNZ) forecasts. The release keeps the RBNZ on track to cut its cash rate target from 4.25% to 4.00% at its next meeting on August 20.

NZD/USD and AUD/USD both advanced, while broader USD softness also saw modest gains for EUR, GBP, CAD, and CHF.

USD/JPY edged lower, though within a contained range, following comments from ruling party member Taro Kono, who again called for further Bank of Japan (BoJ) rate hikes to support the yen. It’s not the first time he has made such remarks.

Japan also released wages data today:

  • Nominal wages rose in June at the fastest pace in four months, though still fell short of forecasts.

  • Real wages (inflation-adjusted) declined for a sixth straight month.

Asia-Pacific equities are trading firmer despite a lacklustre session on Wall Street:

  • ASX 200: +0.6%

  • Nikkei 225: Reversed early losses to close +0.5%

  • Hang Seng: +0.3%

  • Shanghai Composite: +0.3%

U.S. equity index futures turned higher after earlier weakness. Sentiment was weighed by underwhelming earnings results from AMD and SMCI.

In geopolitics, Russian and Chinese naval vessels are set to carry out joint patrols in the Asia-Pacific region after completing military drills in the Sea of Japan, according to Interfax.

This article was written by Eamonn Sheridan at investinglive.com.