Reverberations from the hawkish Federal Open Market Committee statement and from Chair Powell at his press conference continued i
Reverberations from the hawkish
Federal Open Market Committee statement and from Chair Powell at his
press conference continued in Asia time today. Yields on UST were firm and higher.
EUR,
GBP, CHF all traded lower against the US dollar. USD/JPY rallied
early to above 114.70 but subsided a touch from those highs to retest
114.50.
AUD,
NZD and CAD all lost ground.
We
had data from New Zealand today, a 30+ year high for y/y CPI, with
very broadly-based price rises across sectors in the economy. The
implication for the Reserve Bank of New Zealand is confirmation of
rate hikes still to come and probably at even faster rate to an even
higher end point (data dependent ahead of course, but based on
today’s CPI result seemingly a lock).
As
mentioned NZD/USD fell on the session. It barely gained a handful of
tics
on the surging inflation data before dropping away.
Also
dropping away were US equity index futures on Globex trade. Locally,
Japan, Hong Kong, China and Australian shares all slumped.
NZ inflation (graph via Goldman Sachs):
www.forexlive.com