The New Zealand dollar benefits from a less dovish than anticipated RBNZ
The kiwi gained earlier in Asian trading on the back of short covering as the RBNZ maintained their stance that the "next move in the cash rate could be up or down" with central bank governor Adrian Orr adding that the "chance of a rate cut has not increased".
That was enough to send the kiwi flying on the day as it continues to soar above the rest of the major bloc ahead of the European morning session.
The aussie was also a slight beneficiary of that but is also gaining on the back of improved risk sentiment in markets as optimism surrounding US-China trade talks this week is helping to buoy risk assets since overnight trading.
Gains in oil is also helping to push the loonie higher while the move higher in stocks is keeping the Japanese yen offered with USD/JPY still trading around the mid-110 levels.
The dollar is a little lower, carrying over sentiment seen from overnight trading as it struggled to maintain its advance seen on Monday. Looking ahead, trade talks continue to be the main focus of markets this week but while we wait on further developments in Beijing, expect trading to still center around the ebb and flow with the US CPI report to come later to add some spice in North American trading.
