7 May 2014
Asia Recap: Kiwi takes a hit on Wheeler, jobs
FXStreet (Bali) - The New Zealand Dollar, after topping the climbers' table on Tuesday, did the opposite during Wednesday in Asia.
NZD/USD gave back all its gains after RBNZ Governor Graeme Wheeler’s comments on the currency in a speech to the Dairy NZ Farmers’ Forum in Hamilton, after saying that the NZ dollar continues to be overvalued, adding that the level is not sustainable.
Moreover Wheeler also said that intervention is a possibility should the Kiwi remain at such high levels while fundamentals may weaken. Last but not least, Wheeler also said that the strong Kiwi will be a factor in making rates decision along with economic data.
In New Zealand, solid employment figures were also published, with the unemployment rate unchanged at 6% but the employment change - up 0.9% or 22k - and participation rate were both very encouraging. Despite that, the NZD/USD failed to find enough demand on the initial down move - mainly because market was expecting a drop to 5.8% in the jobless rate -, and posted a session low of 0.8683 before retesting 0.87.
In Australia, retail sales for the month of March disappointed, rising only 0.1%, below the 0.4% expectations. The AUD/USD saw shallow dip to 0.9330 which was immediately bought up, with the same pattern repeating after a miss in the HSBC China services PMI. Price consolidates just below the 0.9350 handle ahead of the European trading session.
With regards to USD/JPY, the exchange rate remained depressed near weekly lows, although it held quite well considering the 2%+ sell-off in the Nikkei 225, suggesting that bids at present levels are quite solid. Buy orders are scattered down to 101.30’s, market sources reported.
Main headlines in Asia
RBNZ's Wheeler talks down the Kiwi
NZ jobs: Unemployment rate unchanged, participation increases
Japan Markit Services PMI: 46.4 (April) vs previous 52.2
Australia AiG Performance of Construction Index declined to 45.9 in April from previous 46.2
Fed's Stein: Fed in a ‘very good position’ to keep tapering
BoJ minutes: QE should continue as long as necessary
Australian retail sales misses expectations
China services sector not expanding as much as expected
NZ's English: OECD expects current account deficit to narrow
NZD/USD gave back all its gains after RBNZ Governor Graeme Wheeler’s comments on the currency in a speech to the Dairy NZ Farmers’ Forum in Hamilton, after saying that the NZ dollar continues to be overvalued, adding that the level is not sustainable.
Moreover Wheeler also said that intervention is a possibility should the Kiwi remain at such high levels while fundamentals may weaken. Last but not least, Wheeler also said that the strong Kiwi will be a factor in making rates decision along with economic data.
In New Zealand, solid employment figures were also published, with the unemployment rate unchanged at 6% but the employment change - up 0.9% or 22k - and participation rate were both very encouraging. Despite that, the NZD/USD failed to find enough demand on the initial down move - mainly because market was expecting a drop to 5.8% in the jobless rate -, and posted a session low of 0.8683 before retesting 0.87.
In Australia, retail sales for the month of March disappointed, rising only 0.1%, below the 0.4% expectations. The AUD/USD saw shallow dip to 0.9330 which was immediately bought up, with the same pattern repeating after a miss in the HSBC China services PMI. Price consolidates just below the 0.9350 handle ahead of the European trading session.
With regards to USD/JPY, the exchange rate remained depressed near weekly lows, although it held quite well considering the 2%+ sell-off in the Nikkei 225, suggesting that bids at present levels are quite solid. Buy orders are scattered down to 101.30’s, market sources reported.
Main headlines in Asia
RBNZ's Wheeler talks down the Kiwi
NZ jobs: Unemployment rate unchanged, participation increases
Japan Markit Services PMI: 46.4 (April) vs previous 52.2
Australia AiG Performance of Construction Index declined to 45.9 in April from previous 46.2
Fed's Stein: Fed in a ‘very good position’ to keep tapering
BoJ minutes: QE should continue as long as necessary
Australian retail sales misses expectations
China services sector not expanding as much as expected
NZ's English: OECD expects current account deficit to narrow