RBNZ leave policy unchanged, as expected. Kiwi down 100 bp! BOE I/R decision coming up today

Dollar rally lost some momentum as markets are concerned that US President Donald Trump’s firing of FBI Director James Comey could further reduce the support from fellow Republicans and potentially delay his tax reform. Overall though Wednesday has been a fairly steady 9 May, with most currency pairs fairly close to their previous levels, while commodities and stocks have also traded sideways.

Thursday will be dominated by central bank meetings with interest rate decisions to come from both the RBNZ and the BOE. No change to policy is expected by either although the statements will be closely watched for any change in bias, with the BOE Minutes possibly showing an increased leaning by the MPC to raise rates, although the expected outcome is for the MPC to remain at 8-1 to keep rates on hold for now. Elsewhere, the UK will remain in focus, with the release of the Manufacturing/Industrial Production figures for March, while later in the day, form the US, we get the US PPI and weekly Jobless Claims along with a speech from the Fed’s Evans

NB. The RBNZ just left rates unchanged, as expected. For some reason the Kiwi decided it did not like that, and a knee jerk move has seen it fall a big figure – no idea why at this stage apart from the statement which said that policy will remain accommodative for some time to come and that the fall in the NZ TWI is encouraging. The Aud has followed, with AudUsd dropping a quick 30 points.

CURRENCIES
EURUSD: 1.0866
Res  1.0900  1.0930  1.0950
Sup  1.0850  1.0820  1.0780
USDJPY: 114.27
Res  114.50  114.90  115.20
Sup  114.00  113.80  113.60
GBPUSD: 1.2938
Res  1.2965  1.2985  1.3000
Sup  1.2920  1.2900  1.2875
USDCHF: 1.0089
Res  1.0105  1.0135  1.0170
Sup  1.0045  1.0025  1.0000
AUDUSD: 0.7350
Res  0.7380  0.7400  0.7425
Sup  0.7330  0.7300  0.7285
NZDUSD: 0.6850
Res  0.6880  0.6900  0.6950
Sup  0.6830  0.6805  0.6780
INDICES / COMMODITIES
S&P: 2394
Res  2400  2405  2410
Sup  2385  2380  2375
DJI: 20889
Res  21010  21085  21160
Sup  20800  20770  20700
ASX SPI: 5882
Res  5895  5915  5935
Sup  5835  5815  5800
XAUUSD: 1219
Res  1225  1235  1240
Sup  1215  1210  1200
XAGUSD: 16.16
Res  16.40  16.60  16.80
Sup  16.05  15.80  15.60
WTI: 47.33
Res  47.75  48.00  48.75
Sup  46.80  46.00  45.50

By | May 11, 2017

Source: FXCharts

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