- RBA Gov. Lowe says rate rises not necessarily over
- FX option expiries for Wednesday, 5 April 2023 at the 10am New York cut
- New Zealand dollar marked higher on the back of the larger than expected RBNZ rate hike
- RBNZ +50bp rate hike (vs. +25bp widely expected)
- BOJ has increased its outright purchase offer for 10-25 yr JGBs to 250bn JPY (prior 200bn)
- Japan March Services PMI for March 55.0 (prior 54.0)
- UBS says AUD "most preferred" G10 currency, and also like Gold
- More from Fed's Mester: The actions the Federal Reserve took seem to have stabilised banks
- Australia March Services PMI 48.6 (prior 50.7) & Composite 48.5 (prior 50.6)
- Fed's Mester: Fed will need to raise rates above 5% and keep them there for a while
- Goldman Sachs: OPEC cuts could see a significantly larger market deficit, price to $100
- China is holding back its required approval for mergers that involve US companies
- Forexlive Americas FX news wrap: US dollar dumps as job openings fall
- Barclays expect the Swiss franc to remain resilient, should keep EURCHF around parity
- Private survey of oil inventory shows a huge headline draw, larger than expected
- Trade ideas thread - Wednesday, 5 April 2023
- Major US indices close the day lower
The Reserve Bank of New Zealand raised its cash rate target by 50bp today, to 5.25%. A +25bp was the consensus expected, and very widely at that. The RBNZ blew that out of the water. Governor Orr is hell-bent on driving inflation down in the country. There is more detail in the bullets above.
NZD/USD was marked higher on the announcement and has currently not yet filled in that gap.
There was little other data nor news to drive forex markets far from where the US time zone left them. Hong Kong and China were out on holiday for the day, which sapped a good deal of interest from the session.
Reserve Bank of Australia Governor Lowe gave a speech, the topic was “Monetary Policy, Demand and Supply”. Lowe didn’t add very much at all to what was said yesterday, although a clear subtext to his words seems to be that the Bank is watching the impact of higher rates on overseas economies to help sap demand from the Australian economy (perhaps via reduced demand for Australian exports? Good luck with that as China ramps up).
While on central banks, Loretta Mester, president and CEO of Federal Reserve Bank Cleveland branch spoke, saying she sees Fed rates higher for longer
Asian equity markets:
Japan’s Nikkei 225 %
South Korea’s KOSPI %
Australia’s S&P/ASX 200 %
