Halister News

(Bloomberg) -- Kiwi surges after RBNZ lowers cash rate by an expected 25 bps and Governor Wheeler concedes he has “very limited influence” on the currency; other G-10 pairs were subdued with Japanese markets closed for a holiday.

• NZD/USD +0.8% to 0.7263 vs 0.7203-0.7341 range
  • Buying was led by leverage and momentum funds after RBNZ decision, says trader
  • Wheeler tells parliament even if rates were cut by 50 bps, market would want more; he doesn’t believe RBNZ is out of ammunition
  • A shift in RBNZ statement language suggests back-to-back rate cuts are likelier than market expects, says Westpac
  • ANZ Bank now says RBNZ will cut twice more to 1.5%; UBS sees rate cut in Nov.
• AUD/USD -0.1% to 0.7698 vs 0.7692-0.7750 range
  • Aussie was hammered lower vs kiwi, sending AUD/NZD to a one-week low at 1.0551
• USD/JPY +0.1% to 101.43 vs 101.03-101.49 range
  • Fed may be more open to raising rates as wages rise: UBS
  • It’s “next to impossible” to make sense of this market, says Gluskin Sheff strategist David Rosenberg
• BBDXY +0.1% to 1,178.36
• 10-yr Treasury future -0.1+ to 132-22; UST market begins trading at London open
• EUR/USD -0.1% to 1.1171 vs 1.1168-1.1192 range
  • IMF says substantial ECB rate cuts would hurt bank profits
• GBP/USD steady at 1.3013 vs 1.3000-1.3028 range
  • Brexit hits U.K. housing as property sales drop
• WTI, Brent crude futures and gold all decline; copper gains