NZD

NZD/USD's break above 60c ahead of the RBNZ's announced that they held rates at 5.5% again was shortly lived, and momentum has turned decisively lower. Ans there could be further downside to come.

If the RBNZ hike by 75bp tomorrow in line with the consensus, it will be their first hike of this magnitude on record.

The Reserve Bank of New Zealand has today raised the Official Cash Rate by 50 basis points to 2.50%. It was the RBNZ’s third straight 50bp hike in a row, in a tightening cycle that started back in October.

At its meeting on Wednesday, the Reserve Bank of New Zealand is widely expected to raise the Official Cash Rate by 50 basis points taking the cash rate to 2.50%. It will be the RBNZ’s third straight 50bp hike in a row, in a tightening cycle that started back in October.

Despite another strong inflation report for New Zealand, it was below expectations which leaves traders questioning when (and by how much) RBNZ’s next hike will be.

Last week, AUD shorts were culled at their fastest pace since March 2020, when eye watering levels of stimulus was rolled out at their height of the pandemic.

Gold is clearly back in fashion thanks to the combination of forthcoming Fed hikes and the Ukraine crisis, with futures markets within easy reach of a record high.

As the data was compiled ahead of the FOMC meeting its likely there are some distortions in this week’s speculative positioning report.

In today's first instalment of an Antipodean data double header, New Zealand Q2 GDP smashed expectations, expanding by 2.8% after a 1.4% rise in the March quarter.

After what felt long a long wait, oil prices finally broke out of their ranges after teasing bulls with an upside breakout since last week.

Global new covid cases are continuing to fall. China and Japan have seen a sharp fall in new cases. In NSW, the numbers are finally heading in the right direction, and in New Zealand, the seven-day rolling average has fallen from 66 at the end of August to 22.4.

The month of September is statistically the weakest month of the year for U.S equities. The average decline in September over the past ten years has been -0.60%. Negative prints can be observed in five of the ten years, including a -7% fall in 2011, a -2.5% fall in 2015, and a -4% fall in 2020.

China’s strict lockdown measures have also seen the service sector contract, which points to slower growth for the world’s second largest economy.

Another consumer survey in the US fell notably in August, backing up the earlier University of Michigan Consumer Survey’s dire print.

Wall Street rose marginally to new highs on relatively light volumes ahead of tomorrow’s speech form Jerome Powell, at the Jackson Hole Symposium.

The grey clouds that enveloped New Zealand last week and caused the RBNZ to defer its highly anticipated rate rise on Wednesday have darkened today.