Today’s Key Market Drivers – 9th November 2017
RBNZ leaves official cash rate on hold at 1.75%
The RBNZ left the official cash rate on hold this morning when it released its November monthly policy statement. The Kiwi Dollar jumped on the release of the statement. with traders generally expecting a more dovish statement from the New Zealand Central Bank. The important final paragraph that traders will rush to read first was in line with what the RBNZ has said in recent months. “Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to adjust accordingly.”
This week is generally light on for high impacting economic news for the European and US trading sessions and that is why stock indexes are remaining reasonably range bound with no clear direction. President Trump continues his tour of Asia along with 40 US business leaders and there just isn’t a major new theme for traders to grab onto and run with. The current longer-term fundamental and technical trends still remain in play and whilst the US Dollar has drifted lower against currencies such as the Yen, any pullback will likely be seen as a buying opportunity. The wind has come out of the US Dollar in the short term due to concerns about Trump’s tax policies passing through Capitol Hill. This a stumbling block for the US Dollar until the fog clears and shows just what tax cuts US companies will actually receive and when they will take effect.
Canadian Governor Poloz was less dovish than traders expected on Wednesday which helped the Canadian Dollar higher but has not reversed the longer-term trend on the USD v CAD which has been established for some weeks. It’s been a lazy week for the US Dollar after making solid gains in previous weeks.
Continue to keep a close eye on the GBP v USD there is political unrest in the UK once again and Brexit negotiations that together have the potential to drag the Pound vs US Dollar lower in coming weeks.
About the Author: Andrew Barnett
Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts, and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular key-note speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).
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