Previous Trading Days Events 28 Feb 2024

The RBNZ decided to keep the cash rate steady at 5.5 and trimmed the forecast peak for rates, catching markets by surprise. The RBNZs statements triggered a selloff in the New Zealand dollar and a rally in bonds.

The bank lowered its forecast cash rate peak to 5.6 from a previous projection of 5.7 toning down its hawkish stance and effectively reducing the risk of further tightening.

Core inflation and most measures of inflation expectations have declined, and the risks to the inflation outlook have become more balanced, the RBNZ statement said.

The RBNZs statement reflected the need to keep policy restrictive for a while in order to bring inflation below the topend of its 1 to 3 target band.

Source httpswww.reuters.commarketsratesbondsnzcentralbankholdsratessayspolicyneedsstaytightwhile20240228

Winners vs Losers

USDCAD leads this week with 0.61 gains while the EURJPY remains on the top of the months gainers with 2.21 gains. The USD has been gaining ground significantly since yesterday.

News Reports Monitor Previous Trading Day 28 Feb 2024

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Midnight Night Session Asian

Australias inflation remained steady in January according to the report at 230 today, below economist expectations of a bounce. The market reacted with AUD depreciation but experienced only a light shock at that time. The AUDUSD only dropped significantly soon after when the USD experienced heavy…