Tag Archive: RBNZ

Euro Parity Holds ahead of US CPI

2022-07-13

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2022-07-13

Overview: The US dollar is consolidating with a slight downside bias ahead of the June CPI report. The euro held above $1.00 but is still pinned in the trough. The rate hike by the Reserve Bank of New Zealand failed to have much impact.

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Turkey gets a Reprieve before US Thanksgiving, but Capital Strike may not be Over

2021-11-24

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2021-11-24

Overview:  The dramatic collapse of the Turkish lira was like an accident one could not help look at, but it was not an accident, but the result of a disregard for the exchange rate and compromised institutions.  The lira was off around 15% at its worst yesterday, before settling 11.2% lower.  After falling for 11 sessions, it has steadied today (~2.7%)  but the capital strike may not be over.  On the other hand, the Reserve Bank of New Zealand...

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Dollar Rallies as Energy Surge Quashes Animal Spirits

2021-10-06

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2021-10-06

Overview: Investors worry that surging energy prices will sap economic activity and boost prices.  It is sparking a sharp drop in equities and bonds while lifting the dollar.  The Nikkei fell for the eighth consecutive session, and today's 1% drop brings the cumulative decline to 9%.  South Korea's Kospi also fell by more than 1%. 

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Ever Grand

2021-09-21

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2021-09-21

Overview: Coming into yesterday's session, the S&P 500 had fallen in eight of the past ten sessions.  It closed on its lows before the weekend and gapped.  Nearly the stories in the press blamed China and the likely failure of one of its largest property developers, Evergrande. 

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Consolidative Mood Grips Markets

2021-08-18

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2021-08-18

Overview:  The dollar is consolidating yesterday's advance and is confined to fairly narrow ranges in quiet turnover.  Most of the major currencies are within 0.1% of yesterday's close near midday in Europe. The $1.1700-level held in the euro. 

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FX Daily, July 14: RBNZ Moves Ahead of the Queue, Will the Bank of Canada Maintain its Place?

2021-07-14

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2021-07-14

The Reserve Bank of New Zealand jumped to the front of the queue of central banks adjusting monetary policy by announcing the end of its long-term asset purchases. New Zealand's s 10-year benchmark yield jumped seven basis points, and the Kiwi is up almost 1%, to lead the move against the greenback today.

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FX Daily, July 13: Headline US CPI may Decline for the First Time in a Year

2021-07-13

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2021-07-13

New record highs in the US S&P 500 and NASDAQ coupled with China allowing Tencent to acquire a search engine helped lift Asia Pacific equities. It is the first back-to-back by MSCI's regional index for more than two weeks. Australia's market was a notable exception.

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Measuring Inflation and the Week Ahead

2021-07-12

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2021-07-12

There is quite an unusual price context for new week's economic events, which include June US CPI, retail sales, and industrial production, along with China's Q2 GDP, and the meetings for the Reserve Bank of New Zealand, the Bank of Canada, and the Bank of Japan.

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FX Daily, May 26: RBNZ Joins the Queue, while Yuan’s Advance Continues

2021-05-26

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2021-05-26

The decline in US rates and the doves at the ECB pushing back against the need to reduce bond purchases next month have seen European bond yields unwind most of this month's gain. The inability of US shares to hold on to early gains yesterday did not deter the Asia Pacific and European equities from trading higher.

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FX Daily, August 12: Dollar was Sold in Asia and Europe, but is Poised to Bounce in North America

2020-08-12

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2020-08-12

The biggest rise in the US 10-year yield in a couple of months, as the record quarterly refunding, got underway may have helped stabilize the dollar after an earlier decline. The S&P 500 threatened to extend its advance for the eighth consecutive session yesterday, but a late sell-off stopped it cold after scaling to new five-month highs.

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FX Daily, March 16: Monday Blues: Fed Moves Bigly and Stocks Slump

2020-03-16

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2020-03-16

Overview: The Federal Reserve and central banks in the Asia Pacific region acted forcefully, but were unable to ease the consternation of investors. The Reserve Bank of New Zealand cut key rates by 75 bp. The Bank of Japan appears to have doubled its ETF purchase target to JPY12 trillion, and the Reserve Bank of Australia is preparing for new measures that will be announced Thursday.

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FX Daily, February 12: The Greenback Slips in Subdued Activity

2020-02-12

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2020-02-12

Investors appear to be increasingly looking past the latest coronavirus from China as new afflictions slow. Despite the soggy close of US equities yesterday, Asia Pacific bourses are nearly all higher, led by more than 1% gains in Singapore and Thailand. The Dow Jones Stoxx 600 is at new record highs, led by consumer discretionary and materials sectors.

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FX Weekly Preview: Geopolitics Becomes More Salient as Monetary Policy Plays for Time

2018-05-07

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2018-05-07

Say what one will, US President Trump is vigorously projecting what he believes are American interests. There is virtually no sign of the isolationism that many observers had anticipated. Indeed, as we have argued, the America First rejection of the League of Nations that Trump harkens back to was not isolationist as much as unilateralist. And the same is true of the Trump Administration.

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Currency intervention for Central Banks: When and at which level?

stabilizing profitable intervention
The papers from the Reserve Bank of New Zealand describes in easy words where central banks should intervene based on economic history and experience. It avoids the often used econometric considerations. For FX rates those often do not incorporate sufficient long-term data.

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