NZD/USD falls close to 5-year lows after RBNZ unexpectedly cuts rates

Posted On 11 Jun 2015

Tag: AUDNZD, EURJPY, EURUSD, GBPUSD, NZDUSD, USDJPY

NZD/USD tumbled to a near 5-year low early on Thursday after the Reserve Bank of New Zealand (RBNZ) announced it cut the benchmark interest rate by 25 basis points to 3.25%. NZD/USD gapped down from 0.7200 to 0.7010 as markets were surprised by the central bank’s move. The RBNZ held an explicit easing bias, talked of the need for a weaker NZD. Therefore this is keeping kiwi under pressure.

AUD/NZD soared from 1.0790 to 1.1065 after the RBNZ and after strong Australian jobs data.
AUD/USD opened in Asia at 0.7744, down to 0.7698 early in sympathy with NZD but bounced later to 0.7774. It had another leg up later to 0.7793 after strong Australian jobs data.

USD/JPY was better bid today and consolidated after losses yesterday. The pair moved up, from 122.63 to 123.19. US retail sales and jobless claims will be the man drivers of this pair today.
EUR/JPY traded between 138.84-139.13, GBP/JPY between 190.23-80.

EUR/USD opened in Asia at 1.1322, was mostly on the back foot, off from 1.1335 to 1.1284. There are still concerns over Greece debt negotiations. Media reports say that there has been progress in the talks.Germany is said to have been considering some kind of a staggered deal for Greece.A Bloomberg report said the German government may settle for a clear commitment by Greece to at least one reform measure in order to unlock aid.

GBP/USD traded between 1.5490-1.5532 in Asia, just below the 1.5554 high yesterday.The pair was steadier with the Mansion House speeches, a major risk event over. Cable is managing to hold around the descending 200-day moving average. EUR/GBP was quiet, trading between 0.7285-0.7302.

USD/CHF was better bid, due to dollar moving broadly higher today. The pair traded between 0.9310-36, EUR/CHF was off modestly to 1.0530, bounced later to 1.0550.

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