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22 Sep 2014
Asia Recap: Kiwi ½ cent higher on NZ election results
FXStreet (Bali) - The New Zealand Dollar was the currency exhibiting the most strength in Asia, following the national coalition victory in the general election, while the US Dollar was a touch weaker due to a corrective move.
AUD/USD remained depressed near lows at 0.8920, with virtually no bounces of notice so far. NZD/USD caight an early bid tone, hanging onto its small gains around 0.8155/60. USD/JPY traded along a base being built at 108.75/80. EUR/USD came off lows to trade at 1.2860 intraday high/GBP/USD was firmer at 1.6350.
On the fundamental/macro space, the New Zealand National coalition won a third consecutive term, obtaining at least 61 seats, enough to govern alone in a 121- seat House. The G20 Communique from the September 20-21 meetings in Cairns, Australia, noted that economic conditions in some key economies appear to be getting stronger, while on the flip side, they concluded that growth in the global economy still uneven and below the pace required to adequately generate jobs, also highlighting downside risks in financial market due to geopolitical tensions. The current stagnation in EZ was flagged as an area of concern.
New Zealand's Q3 Westpac Consumer Confidence came softer at 116.7 vs. 121.2 prior. Bundesbank President Jens Weidmann crossed the wires saying that “no fiscal stimulus is needed from the German perspective”, while Bank of Canada Governor Stephen Poloz made some juicy comments on the latest inflation numbers out of Canada last Friday, noting that there is no reason to believe that the recent rise in the country's inflation rate - Sept 19 saw core CPI at the highest since 2012 - will continue as the economy still shows excess capacity.
Main headlines in Asia
NZ PM Key wins third consecutive term
G-20 communique: Economic conditions in key areas stronger, downside risks persist
NZ consumer confidence drops in Q3, high by historical standards
BoC Poloz downplays rise in the nation's inflation
GBP positioning hit YTD lows ahead of Scottish vote - Nomura
Japan's second tax hike set to go ahead - FT
Macroprudential risk for the Aussie - RBS
AUD/USD remained depressed near lows at 0.8920, with virtually no bounces of notice so far. NZD/USD caight an early bid tone, hanging onto its small gains around 0.8155/60. USD/JPY traded along a base being built at 108.75/80. EUR/USD came off lows to trade at 1.2860 intraday high/GBP/USD was firmer at 1.6350.
On the fundamental/macro space, the New Zealand National coalition won a third consecutive term, obtaining at least 61 seats, enough to govern alone in a 121- seat House. The G20 Communique from the September 20-21 meetings in Cairns, Australia, noted that economic conditions in some key economies appear to be getting stronger, while on the flip side, they concluded that growth in the global economy still uneven and below the pace required to adequately generate jobs, also highlighting downside risks in financial market due to geopolitical tensions. The current stagnation in EZ was flagged as an area of concern.
New Zealand's Q3 Westpac Consumer Confidence came softer at 116.7 vs. 121.2 prior. Bundesbank President Jens Weidmann crossed the wires saying that “no fiscal stimulus is needed from the German perspective”, while Bank of Canada Governor Stephen Poloz made some juicy comments on the latest inflation numbers out of Canada last Friday, noting that there is no reason to believe that the recent rise in the country's inflation rate - Sept 19 saw core CPI at the highest since 2012 - will continue as the economy still shows excess capacity.
Main headlines in Asia
NZ PM Key wins third consecutive term
G-20 communique: Economic conditions in key areas stronger, downside risks persist
NZ consumer confidence drops in Q3, high by historical standards
BoC Poloz downplays rise in the nation's inflation
GBP positioning hit YTD lows ahead of Scottish vote - Nomura
Japan's second tax hike set to go ahead - FT
Macroprudential risk for the Aussie - RBS