New Zealand Dollar Rises after RBNZ Maintains Cash Rate

The New Zealand dollar is in positive territory on Wednesday in the aftermath of the Reserve Bank of New Zealand’s decision to maintain interest rate levels. In the European session, NZD/USD is trading at 0.5965, up 0.25%. NZD/USD rose as high as 0.5993 but has pared most of these gains.

Sunset Market Commentary

UK July inflation numbers grabbed most attention this morning. Headline CPI fell slightly less than expected (-0.4% M/M vs -0.5%) with the Y/Y-figure dropping from 7.9% to 6.8%, the lowest level since February of last year.

Kiwi Dollar Tries to Fly Despite RBNZ’s 'Wait-and-See Approach

The Reserve Bank of New Zealand left its key rate unchanged for the second time at 5.5%. Most analysts predicted this decision, but it created positive momentum in the NZDUSD, which at one point added about 1% to the day’s lows set before publication.

GBP/AUD: Bullish Run Extends as England Ends Matildas Mania

England has advanced to its first Women’s World Cup final with a 3-1 victory over co-host Australia.  Soccer mania was embraced in Australia as the women’s soccer team’s put up an impressive run that fell two wins short of becoming champions.  The Matildas dream run might be over, but the pain for the Australian dollar seems like it might be poised to continue. England will play Spain in the Women’s World Cup Final on Sunday.

Will Japan Intervene to Rescue the Battered Yen?

The Japanese yen has resumed its meltdown, falling victim to widening rate differentials and rising energy costs. Despite the currency trading at levels that prompted FX intervention last year, Japanese authorities don’t appear so concerned this time, which suggests that another round of intervention is some distance away. For this dynamic to change, USD/JPY would need to approach the 150 region in a hurry. 

Aussie Dollar Continues to Trade on Weak Side Against Strong USD

The Aussie dollar continues to trade on the weak side against a strong USD with AUD/USD falling below the 0.64 big figure for the first time since November last year. The 2022 low at AUD/USD 0.6170 is key support.

Bears Get the Upper Hand in Crypto

Bitcoin slipped to $28.3K in light trading early Thursday morning before stabilising at $28.6K. The fall below $28.8K confirmed the local dominance of the bears. The following key support points are now at the next round level of $28K and then at the $27.2K area, where the 200-day moving average and uptrend support from last November are centred.

Stocks Try to Rebound as Global Bond Yields Hit 15-year High

US stocks are trying to hold onto gains as investors watch a bond market selloff that is taking global bond yields to a 15-year high. ​ China remains in focus and the decision from authorities to tell state-owned banks to step up intervention efforts is providing some support to markets. It is clear that China is working on their response here and that more support is on its way. ​ ​ ​

GBP/USD Rises Ahead of UK Retail Sales

The UK will wrap up a busy week with retail sales on Friday. The July report is expected to show a decline in consumer spending. Headline retail sales are expected to fall by 0.5% after a 0.7% gain in May and core retail sales are projected to decline by 0.7% after a 0.8% increase in May. The June numbers were higher than expected despite high inflation, helped by record-hot weather. Will the July data also surprise to the upside?

Japanese Yen Rebounds, Key Inflation Data Next

USD/JPY has been the worst performer among the major currencies over the past month, declining about 7%. The yen dropped below the 146 line on Wednesday which marked a new nine-month low. The Japanese currency lost ground in the aftermath of the Federal Reserve minutes, in which members expressed concern about high inflation.