Dollar Holds on to Gains
The US Dollar managed to hang onto the majority of its recent gains during Wednesday trade in Asia after Donald Trump commented that a deal was close to being made with China. The President did not disclose any details of the talks which analysts say might have seen the Dollar higher. Market players are hopeful that the two governments are close to rolling back the reciprocal tariffs that had been imposed and which have largely resulted in weakened growth globally. With the President's penchant for hype, market players are anxious for something more definitive.
The US Dollar Index, a gauge of the greenback's relative strength, was trading higher at 98.3140 .DXY, a gain of 0.01% as of 10:18 am in Tokyo. The Index has hit a session high of 98.3330 .DXY. The USD/JPY was lower at 108.9120 Yen, down 0.0569%, while the EUR/USD was at $1.1013, up 0.0182%.
RBNZ Surprises with Status Quo
The Reserve Bank of New Zealand surprised markets by holding rates at current levels; economists had predicted the central bank would lower its cash rate by 25 basis points. In its accompanying statement, the RBNZ indicated that given the weakened economic growth, and especially in the slowed growth of its key trading partner (i.e. China), interest rates would be low for a prolonged period. Nonetheless, the RBNZ indicated it would continue to monitor the global situation and react as and when necessary. The NZD/USD was trading at $0.6412, up 1.2219%and off the earlier high of $0.64247.