Services Sector Boost and Shifting RBNZ Rate Forecasts Propel NZD Higher
| Action Insight Daily Report 2-19-24 |
Services Sector Boost and Shifting RBNZ Rate Forecasts Propel NZD Higher |
New Zealand Dollar bounces broadly in quiet Asian session, partly underpinned by notable improvement economic data which showed that the services sector has swung back into expansion at the start of 2024. Additionally, economists are increasingly expecting that more work is needed by RBNZ to cool the economic to bring down inflation. BNZ Bank said that it has postponed its expectation of an RBNZ rate cut to November from an earlier prediction of August. This adjustment comes amid lively discussions about RBNZ's policy path, especially in the wake of ANZ's projection of an additional rate hike in February. BNZ's head of research cautioned against further hikes, highlighting easing labor market conditions, increasing spare capacity, and declining inflation as reasons why another increase would constitute a policy misstep. Despite these concerns, the expectation that interest rates will remain at their current high levels continues to lend support to the Kiwi... |
USD/CHF Daily Outlook Daily Pivots: (S1) 0.8788; (P) 0.8813; (R1) 0.8835; More.... Intraday bias in USD/CHF remains neutral at this point, and more consolidations could be seen below 0.8884. Nevertheless, further rally is expected as long as 0.8727 resistance turned support holds. On the upside, break of 0.8885 will resume the rise from 0.8332 and target and 100% projection of 0.8332 to 0.8727 from 0.8550 at 0.8954. However, sustained break of 0.8727 will dampen this bullish view, and turn bias back to the downside for 0.8550 support instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:30 | NZD | Business NZ PSI Jan | 52.1 | 48.8 | | 23:50 | JPY | Machinery Orders M/M Dec | 2.70% | 2.50% | -4.90% | | 00:01 | GBP | Rightmove House Price Index M/M Feb | 0.90% | 1.30% | | 11:00 | EUR | German Buba Monthly Report | | 13:30 | CAD | Industrial Product Price M/M Jan | 0.10% | -1.50% | | 13:30 | CAD | Raw Material Price Index Jan | 0.80% | -4.90% |
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