FOREX NEWS

ForexLive Asia FX news wrap: NZD above 0.69, but not for long – ForexLive


Forex news for Asia trading
for Wednesday 11 November 2020

The New Zealand dollar was a
mover again during the session, with Reserve
Bank of New Zealand Assistant
Governor Hawkesby giving a media interview reiterating
some of the points the RBNZ and Governor Orr made yesterday.
Hawkesby said

  • the
    Bank is not ruling out negative rates but less stimulus
    appears to be required than was thought necessary just a few months
    ago
  • RBNZ
    has not changed its
    guidance on keeping OCR at 0.25% until March 2021

There
is more in the relevant bullets above.

A
point Hawkesby made
was that the move higher for the kiwi $ came because
analysts changed their call on expecting negative rates (if you
recall from yesterday, markets repriced their view on negative rates
from the RBNZ as now being
a lot less likely).
What maybe he should
have added is that analysts were quite right to do so as the RBNZ
made clear yesterday, its (I posted this yesterday) “unconstrained OCR track” indicated the Bank now views that
around 100bp less stimulus is necessary … so of course the market
repriced the probability of negative rates!

NZD/USD
traded to a high of 0.6915 and thereabouts before dropping back under
the figureeand is circa 0.6890 as I post.

USD/JPY
lost some ground today, 20 or so points. Other currencies are little net changed. 

Coronavirus news was mixed,
with Moderna making positive sounds on the progress of its vaccine
candidate (initial availability appears it may be close to around the
same time as Pfizer’s – that’s my take, not a quote from
Moderna) while US new cases rocketed to close to 144,000 for the most
recent day, and a number of hospitals are reporting they are at capacity. The US election news was a groundhog day, Biden leading and
the margin is increasing, Trump still not recognising the result.

Note
in the bullets above, heads of the BoE, ECB and Fed are all speaking
today! 

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