ForexLive Asia FX news wrap: RBNZ 25bp cash rate hike as expected

Forex news for Asia trading on
Wednesday
24
November 2021

RBNZ, Read from the bottom up for the time sequence:

Other:

The Reserve Bank of New Zealand
announced the expected 0.25% hike to their cash rate today and mapped
out a more aggressive path ahead for further hikes. At his news
conference Governor Orr once again said 25bp hikes are appropriate
for the time being after there was substantial speculation in markets
for
a
50bp hike today.

NZD/USD
has since traded lower after the announcement and extended its drop
after Orr’s press conference. AUD/USD has fallen alongside. From
Australia today we had Q3 construction work data which came in
negative, lockdowns impacting, but not nearly as bad as was widely
expected.

EUR/USD
gained on little obvious fresh news, as did CAD against the USD as
follow-through from Biden’s oil reserve release announcement sent
oil prices higher. USD/CAD
has subsequently had some retracement.

USD/CHF
and USD/JPY inched higher but USD/JPY has come off its session high.
Cable is little changed.

Markets
are awaiting the Federal Open Market Committee November minutes due
for release on Wednesday US time. Note that Wednesday is the last full
day of trading for US markets for this week, Thursday is the Thanksgiving
holiday. 

NZD/USD:

Forex news for Asia trading onWednesday24November 2021RBNZ, Read from the bottom up for the time sequence:

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