ForexLive Asia-Pacific FX news wrap: RBNZ to hold rates higher for longer, NZD rises |
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The
New Zealand dollar was an outperformer during the session, rising
towards 0.6075 on the back of the Reserve Bank of New Zealand April
monetary policy statement (officially this was a Monetary Policy
Review (MPR), not a Monetary Policy Statements (MPS). Review’s are
briefer that Statements). The Bank left its official Cash Rate
unchanged at 5.5% and wrapped up its statement with the hawkish:
The
Committee agreed that interest rates need to remain at a restrictive
level for a sustained period to ensure annual consumer price
inflation returns to the 1 to 3 percent target range.
Bolding
is mine.
Across
other major FX ranges were tight, with traders now awaiting the US
CPI report due at 8.30 am US Eastern time (1230 GMT).
We
had remarks from Bank of Japan Governor Ueda (see points above). Most
notably he said that the Bank of Japan will consider a policy change
if the weak yen causes inflation to overshoot. Japanese Government
Bond 10 year yield rose to its highest since March 15.
Fitch
(rating agency) revised its outlook on China to negative, while
affirming the country at ‘A+’ rating. In downgrading its outlook Fitch cited increasing risks to China’s public finance outlook (more in the bullet point above).
In
regional equities, Hong Kong’s Hang Seng performed well:
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