Market Brief: Kiwi plunges while Asian stocks holding steady

A summary of the FX & stock market trends & highlights from today's Asian mid-session

FX & Stock market snapshots as of [07/08/2019 0600 GMT]

  • The biggest movers in today’s Asian session are the NZD/USD and NZD/USD pairs where the New Zealand central bank, RBNZ has surprised the markets with a 50 bps cut to its official cash rate to bring it down to a record low of 1.00%. The NZD/USD has tumbled to a multi-month low of 0.6377 (current intraday low) since Jan 2016.
  • The on-going weakness seen in NZD/USD has dragged down the AUD/USD as well to hit a 10-year low of 0.6677 (current intraday low) that also breached below the 03 Jan 2019 flash crash low of 0.6743.
  • In the latest Bank of Japan (BOJ) Summary of Opinions, some BOJ policy markets warned the risks to economic outlook and called for a further discussion on methods to ramp up stimulus. The USD/JPY has dipped slightly but still holding above 06 Aug swing low area of 105.50.

Related analysis:

Daily Forex Technical Strategy (Wed 07 Aug)

NZD/USD crashes below 4-year support, further downside ahead

AUD/JPY: Aussie goes from weakest to strongest but renewed selling likely

  • Ahead of European opening session, Asian stock markets are trading in a mix bag. The outperformers are Australia’s’ ASX 200 and Singapore’s STI while modest losses are seen in the Korea’s Kospi 200 and Japan’s Nikkei 225 as at today’s Asian mid-session
  • The 0.64% gain seen in the ASX 200 has been led by “safe haven” plays where the Telecommunication Services and Consumer Non-Cyclicals sectors which have rallied by 2% and 1.40% respectively.
  • The S&P 500 E-mini futures have also consolidated its overnight U.S. session gains in today’s Asian session by holding above yesterday’s U.S. session low of 2846. In addition, the German DAX and FSTE 100 CFD futures are trading higher at this juncture; up by 0.62% and 0.25% respectively. Overall, we still viewed these rallies as corrective in nature within a longer-term bearish trend (click here for the updated weekly technical outlook).

Macroeconomic Calendar

*Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.

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