The post New Zealand Dollar: RBNZ hawkish path supports currency – BBH appeared on BitcoinEthereumNews.com.
Brown Brothers Harriman’s (BBH) Elias Haddad reports that the Reserve Bank of New Zealand (RBNZ) delivered a 25 bps hike to 2.50%, largely priced in, triggering an New Zealand Dollar (NZD) rally before gains were trimmed by Middle East tensions. Haddad highlights that the RBNZ sees further Official Cash Rate (OCR) increases as likely, has room to normalize towards a neutral 2.2–4.1% range, and markets price nearly 100 bps of tightening over the next year. Hawkish RBNZ and neutral OCR range “The RBNZ raised the Official Cash rate (OCR) by 25bps to 2.50%, the first hike in three years, and indicated that “further OCR increases appear likely at upcoming meetings.” The RBNZ did not disclose the Committee’s vote split but indicated that the decision to increase the OCR was reached by consensus.” “The RBNZ estimated neutral range is between 2.2% and 4.1%. The swaps curve implies nearly
The post US Dollar Index: Conflict-driven support and rate backdrop – BBH appeared on BitcoinEthereumNews.com.
Brown Brothers Harriman’s (BBH) Elias Haddad notes that renewed Middle East tensions are pressuring stocks and bonds while supporting the US Dollar (USD) and Oil. Haddad sees the Dollar Index (DXY) edging higher, with US-G6 two-year yield spreads consistent with DXY slightly above 102.00 and US economic outperformance keeping rate differentials supportive for the Dollar ahead of the FOMC minutes. DXY supported by yields and risk “Re-escalation of the Middle East conflict is weighing on stocks and bonds. Crude oil prices surged and USD inched higher. “ “The US completed yesterday a new round of offensive strikes against Iran and revoked a waiver that allowed the sale of Iranian oil in response to Iran’s attacks on commercial vessels transiting the Strait of Hormuz.” “In our view, the dollar index (DXY) can edge higher. US-G6 two-year bond yields are consistent with DXY trading
The post New Zealand Dollar gives away gains amid renewed tensions in the Middle East appeared on BitcoinEthereumNews.com.
The New Zealand Dollar’s (NZD) rally against the US Dollar (USD) has been short-lived, as the pair returned to sub-0.5700 levels during the European session after being rejected at the 0.5725 area earlier in the day. Market concerns about the status of the US-Iran ceasefire have hammered risk appetite, offsetting the positive Kiwi’s reaction to the Reserve Bank of New Zealand’s (RBNZ) hawkish hike. US President Donald Trump affirmed earlier on Wednesday that the ceasefire is no longer in effect, and that, in his opinion, the memorandum of understanding “is over,” although he added that negotiators can “keep talking if they want.” These remarks come after the rival countries exchanged attacks earlier on the day and the US revoked Iran’s authorization to export Crude. The resumption of the hostilities has boosted US Treasury yields, sending the safe-haven US Dollar h
The post New Zealand Dollar: RBNZ hike seen as moderate tightening – MUFG appeared on BitcoinEthereumNews.com.
MUFG’s Derek Halpenny reports that the New Zealand Dollar strengthened after the RBNZ raised its policy rate by 25 bps to 2.50%, the first increase since May 2023. He notes OIS had largely priced the move and more hikes, but MUFG expects only two additional increases by March 2027. Communication is viewed as consistent with moderate tightening, with fragile domestic conditions limiting follow‑through NZD gains. RBNZ decision and NZD reaction “The only notable move for the US dollar this morning has been weaker versus the New Zealand dollar which was in response to the decision of the RBNZ to raise the key policy rate by 25bps to 2.50%, the first hike since May 2023. The OIS market yesterday had 18bps priced for today and 85bps over the coming twelve months.” “We expected this move, but have only two further hikes priced by March 2027, slightly less than implied by the OIS curv
Rising oil prices due to Middle East tensions may lead to inflationary pressures, impacting global economic stability and market strategies.
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The post New Zealand Dollar: Hawkish RBNZ but kiwi seen vulnerable – Commerzbank appeared on BitcoinEthereumNews.com.
Commerzbank’s Volkmar Baur reports the Reserve Bank of New Zealand (RBNZ) lifted the Official Cash Rate (OCR) to 2.5%, with the New Zealand Dollar (NZD) gaining slightly versus US Dollar (USD). RBNZ’s tone was more hawkish than expected, addressing structural inflation risks, and Commerzbank still looks for one more hike. However, they see market pricing of three additional hikes as excessive, expecting kiwi weakness once expectations are pared back. Market overpricing future OCR hikes “As we expected, the Reserve Bank of New Zealand raised the official cash rate (OCR) this morning to 2.5%. The kiwi reacted positively to this move and gained slightly against the USD after having fallen significantly in recent weeks. In its statement, however, the central bank’s tone was, on the whole, perhaps a bit more hawkish than we would have expected.” “We, too, had anticipated a c
The post Bitcoin (BTC) Slides Below $64K as Middle East Tensions and Tech Selloff Shake Markets appeared on BitcoinEthereumNews.com.
Key Highlights BTC declined 1.4% to $63,305 following U.S. military action targeting Iranian assets Crude oil surged more than 5% amid escalating tensions in the Strait of Hormuz region Technology sector experienced significant losses, with Micron plummeting over 9% Spot Bitcoin ETFs attracted $265.7 million in net capital on Monday Technical analyst Ted Pillows cautions that breaking below $62,500 may trigger a slide to $60,000 Bitcoin retreated to approximately $63,000 on Tuesday following U.S. military operations targeting Iranian positions. The escalation followed incidents involving three commercial oil tankers in the vicinity of the Strait of Hormuz. Bitcoin (BTC) Price U.S. Central Command characterized the military response as retaliation for Iranian hostile actions directed at civilian shipping vessels. Three tankers sustained damage—two from pro
The post Can NZD/USD build on hawkish RBNZ-led gains beyond 0.5715 confluence? appeared on BitcoinEthereumNews.com.
The NZD/USD pair gains strong positive traction following the Reserve Bank of New Zealand’s (RBNZ) first rate hike in three years and reclaims the 0.5700 mark during the Asian session on Wednesday. Spot prices stick to intraday gains in the wake of the central bank’s hawkish outlook, saying that further rate increases appear likely at the coming meetings. Moreover, subdued US Dollar (USD) price action backs the case for a further appreciating move for the currency pair as the market focus shifts to the release of the FOMC Minutes, due later today. From a technical perspective, the NZD/USD pair is currently placed near the 0.5715 confluence hurdle – comprising the 100-day Exponential Moving Average (EMA) on the 4-hour chart and the 23.6% Fibonacci retracement level of the May-June fall. Some follow-through buying will be seen as a fresh trigger for bullish traders and set
The post AUD/USD Price Forecast: Hawkish remarks from RBA’s Hunter lift Australian Dollar appeared on BitcoinEthereumNews.com.
The Australian Dollar (AUD) trades 0.23% higher to near 0.6943 against the US Dollar (USD) during the Asian trading session on Wednesday. The Aussie pair gains as the Australian Dollar outperforms its major currency peers, except the New Zealand Dollar (NZD), with the Reserve Bank of Australia (RBA) keeping the door open for further monetary policy tightening, if needed, to bring inflation back to the central bank’s target. Australian Dollar Price Today The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Japanese Yen. USD EUR GBP JPY CAD AUD NZD CHF USD -0.03% 0.03% 0.15% -0.02% -0.21% -0.50% 0.03% EUR 0.03% 0.05% 0.17% -0.00% -0.18% -0.49% 0.05% GBP -0.03% -0.05% 0.13% -0.03% -0.25% -0.52% -0.03% JPY -0.15% -0.17% -0.13% -0.18% -0.34% -0.65% -0.15% CAD 0.0
