Overnight the RBNZ has cut rates to 2.00% from a previous 2.25% in line with consensus expectations and inidicated more rate cuts could be needed. NZDUSD spiked to 0.7338 as traders had originally anticipated a more agressive cut. NZDUSD had not seen these levels in over a year, since May 2015.
Sentiment was mixed this morning in Asia with much of the major indices showing mild moves in both directions. The handover from US close was negative yetserday as oil prices continued to retreat. Japanese markets were closed this morning.
This morning the US Dollar tries to rebound from the losses seen for this week so far, and is currently trading at 95.72 on the US Dollar index (DXY). Euro remains on the defensive despite retreating against the USD this morning. EURUSD is currently trading at 1.1166 as we write this commentary, these are also daily lows so far. 1.1160 remains a key support, with TraderTip indicating that we could still see 1.12 levels as long as this level holds.
The economic docket is relatively quiet for the rest of the day today, amongst other we have the weekly jobless claims from the US later this afternoon.
