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ForexLive Asia-Pacific FX news wrap: NZD/USD lower after an expected RBNZ 50bp rate cut

NZD/USD
is lower on the session, dragging AUD/USD down with it (though not to
the same extent, AUD/NZD is higher) after the Reserve Bank of New
Zealand cut its cash rate target to 4.75%, down from 5.25%. This was
a widely expected move from the Bank. Curiously the Bank did not
offer up much in the way of explicit guidance for what is to come. I
don’t think saying another rate cut, likely 50bp again, is a very
strong probability at the next meeting, on November 27 is going too
far out on a limb, especially given the first meeting for 2025 is
nearly three months later on February 19.

We
had speakers from the US Federal Reserve, Boston’s Collins and Vice
Chair Jefferson. Both conveyed the message that while supporting the
50bp rate cut last month the November cut will not be of the same
magnitude. More in the points above from boht of them. Plenty more,
quite verbose they were.

A
former Bank of Japan official, one-time executive director in charge
of monetary policy Eiji Maeda, said the BOJ is likely to hike rates
again in January, that PM Isheba will not stand in the way.

Apart
from that NZD drop major FX was relatively range bound. It seems
Asian traders are happy to await the US CPI report on Thursday now.

Except
for Chinese equities, which got slammed lower again today.

This article was written by Eamonn Sheridan at www.forexlive.com.

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