- RBNZ shifted to dovish in today’s meeting. Although they kept rates at 1.75%, they stated the next rate move is likely down, citing weaker growth (domestically and with trade partners) and downside risks to their outlook. NZD sold off heavily across the board and is crowned volatility king of the session.
- Trump’s pick for an open Fed seat, Stephen Moore, thinks the Fed should cut by 50bps immediately.
- Caught in the Kiwi crossfire, AUD was also dragged lower along with AU yields, seeing AUD/USD touch a 2-day low. Still, it didn’t stop AUD/NZD popping to a 1-month high and confirming a bullish wedge reversal.
- WTI remains near its cycle highs, USDJPY hovers near resistance. US10Y trades around 2.42%, after finding stability at 2.4% with yesterday’s bullish inside day. Mixed picture for equities.
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