Oil price drops dragged sentiment lower and reflected negatively on sentiment yesterday at US close. This morning a slight move higher for the price of oil met optimism during the asian session, with the major indices reflecting some gains, albeit being small margins. The drop in oil prices is the result of production and output rises despite the prodcution cuts that OPEC agreed for last January.
Late on Wednesday the Reserve Bank Of New Zealand left its interest rate unchanged as had been expected and said that this would remain so for a while. Our market movements currency chart for today is showing support for the NZD after the RBNZ decision and announcement. RBNZ reiterated their optimism for medium term growth.
The US Dollar has pulled back slightly after making month’s highs last Tuesday. On the US Dollar index (DXY) we are currently below Tuesday’s highs of 97.87 as it seems that profit-taking kicked in, however the USD seems to be holding on well so far and we’re currently trading at 97.50.
Despite the Fed’s hawkishness and rate rise last week, recent US data hasn’t been good enough to provide larger support to the USD move higher.
