💥 Fed cuts sparks mid cap boom! ProPicks AI scores with 4 stocks +23% each. Get October’s update first.Pick Stocks with AI

Forex - Kiwi weakens after RBNZ, yen flat ahead of BoJ

Published 04/29/2015, 07:51 PM
Updated 04/29/2015, 07:53 PM
Yen flat in Asia
USD/JPY
-
AUD/USD
-
NZD/USD
-

Investing.com - The yen was flat to slightly stronger ahead of the latest Bank of Japan review on rates and after the U.S. Federal Reserve stood pat, while the Kiwi eased after the central bank hinted a rate cut was possible if demand weakens further in early Asia on Thursday.

NZD/USD traded at 0.7615, down 0.92%, after the RBNZ said it would hold the official cash rate at 3.5%, but consider a cut on demand cues.

USD/JPY traded at 119.03, flat, while AUD/USD held at 0.7998, down 0.11%.

In Japan, March preliminary industrial output data showed a drop of 0.3%, less than the 2.3% decline seen.

Around 1230 (0330 GMT), the BoJ is due to announce its monetary policy decision after its one-day policy meeting. The BoJ is expected to stand pat on monetary policy as officials believe longer-term inflation expectations are still rising.

After the meeting, the BoJ will release the board's medium-term GDP and CPI forecasts and risk analysis through the end of fiscal 2017 in its semi-annual Outlook Report at 1500 JST (0600 GMT). The board's median forecast for core CPI in fiscal 2015 is expected to be revised down to around 0.9% from 1.0% made in January and to around 2.1% from 2.2% for fiscal 2016. This would be followed by BoJ Governor Haruhiko Kuroda's news conference at 1530 (0630 GMT).

In Australia, the RBA's March private sector credit data are due at 1130 in Sydney (0130 GMT). The data are expected to show a 0.5% month-on-month rise seen, the same pace as February. As usual, the focus will be on investor housing credit which was last at a gain of 10.1% year-on-year.

Also due at the same time is trade price indexes for the first quarter where the expectation is for a 2.0% quarter-on-quarter rise in import price index and a 0.2% rise in the export price index.

The Federal Reserve, as expected kept interest rates at its current level following the conclusion of its Federal Open Market Committee meeting on Wednesday, but offered little hints on the timing of its first rate hike in nearly a decade.

In the FOMC's latest statement, all calendar references have been removed on when the Fed could begin to raise rates. Previously, the Fed indicated that it could start raising rates in June.

In March, the Fed removed a stance of "remaining patient" on policy normalization, a reference which typically indicates that it is ready to raise rates. A raft of soft economic data in recent weeks, however, has ostensibly convinced the U.S. central bank to delay lift-off. On Wednesday, the U.S. Commerce Department announced that GDP for the first quarter expanded by 0.2%, far below analysts' forecasts of 1% growth.

The Fed's acknowledgement of weakness in some sectors of the economy makes it more likely it will not be ready to raise until at least September, which kept stocks from falling further.

Earlier in the day, data showed gross domestic product expanded at an only 0.2 percent annual rate as harsh weather put off shoppers and energy companies cut spending.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.