Kiwi starts recovering on inflation outlook
New Zealand dollar rose in European trade against a basket of major rivals, starting to recover from two-month lows against US dollar on inflation forecasts in New Zealand, which rose for the third quarter of the year, boosting chances of another interest rate hike.
US dollar declined a day before major US inflation data for July, which could showcase slower consumer prices and reduced pressures on Fed policy makers.
NZD/USD rose 0.4% to 0.6089, with a session-low at 0.6048, after losing 0.7% on Tuesday, marking a two-month low at 60.35, on concerns about China's economy, the most important trade partner of New Zealand.
Inflation Forecasts
Earlier data, data showed that business managers in New Zealand expect inflation to be up to 2.83% in the third quarter of the year from 2.79% in the second quarter.
The outlook of higher prices could nudge the Reserve Bank of New Zealand to raise interest rates once more to control inflation.
The RBNZ will convene again on August 16th to discuss economic developments and appropriate policies.
US Dollar
The dollar index fell 0.2% today, on track for the first loss in three sessions against a basket of major rivals.
Such a decline comes ahead of major US inflation data, crucial for gauging the likely path ahead for monetary policies.
Dollar adds gains ahead of major inflation data
Dollar rose against most major rivals on Tuesday as investors buy up the safe haven after Moody's decision.
Moody's downgraded credit ratings for 10 US banks in one go, while putting six other major banks in negative review, while changing the outlook negatively to 11 other US banks.
Such a decision comes days after Fitch's shocking US government credit downgrade.
Otherwise, Chinese customs data showed exports tumbled 14.5% in July y/y, the largest decline since February 2020, while Chinese exports to the US tumbled 23.1%.
Markets await latest inflation data for July, with US consumer prices data released on Thursday.
US 10-year treasury yields fell by 9 basis points to 4.0992%, while 30-year yields fell by the same amount to 4.179%.
In new statements, Patrick Harker, Philly Fed President, said that current economic conditions indicates there's no need for more policy tightening in September.
Harker clearly expects the Fed to hold interest rates until the impact of recent policy decisions is measured clearly in the economy.
Harker warned he doesn't expect an interest rate hike soon, and he expects US economy to head for a soft recession and a slowdown in the second half of the year.
On trading, the dollar index rose 0.5% as of 19:45 GMT to 102.5, with a session-high at 102.8, and a low at 102.07.
Loonie
The Canadian dollar fell 0.3% against its US counterpart as of 21:01 GMT to 0.7453.
Aussie
AUD/USD fell 0.5% as of 21:01 GMT to 0.6543.
Gold prices decline as investors buy up dollar and US bonds
Gold prices declined on Tuesday as the dollar gained ground against most major rivals while investors buy up bonds.
Moody's downgraded credit ratings for 10 US banks in one go, while putting six other major banks in negative review, while changing the outlook negatively to 11 other US banks.
Such a decision comes days after Fitch's shocking US government credit downgrade.
Otherwise, Chinese customs data showed exports tumbled 14.5% in July y/y, the largest decline since February 2020, while Chinese exports to the US tumbled 23.1%.
Markets await latest inflation data for July, with US consumer prices data released on Thursday.
US 10-year treasury yields fell by 9 basis points to 4.0992%, while 30-year yields fell by the same amount to 4.179%.
In new statements, Patrick Harker, Philly Fed President, said that current economic conditions indicates there's no need for more policy tightening in September.
Harker clearly expects the Fed to hold interest rates until the impact of recent policy decisions is measured clearly in the economy.
Harker warned he doesn't expect an interest rate hike soon, and he expects US economy to head for a soft recession and a slowdown in the second half of the year.
Otherwise, the dollar index fell 0.5% as of 19:45 GMT to 102.5, with a session-high at 102.8, and a low at 102.08.
Gold spot prices fell 0.5%, or $10 to $1,960 as of 19:46 GMT.
Dow Jones declines 350 points after Moody's decision on US banks rating
US stock indices fell on Tuesday after a rating decision by Moody's on US banks.
Moody's downgraded credit ratings for 10 US banks in one go, while putting six other major banks in negative review, while changing the outlook negatively to 11 other US banks.
Such a decision comes days after Fitch's shocking US government credit downgrade.
Otherwise, Chinese customs data showed exports tumbled 14.5% in July y/y, the largest decline since February 2020, while Chinese exports to the US tumbled 23.1%.
Markets await latest inflation data for July, with US consumer prices data released on Thursday.
US 10-year treasury yields fell by 9 basis points to 4.0992%, while 30-year yields fell by the same amount to 4.179%.
In new statements, Patrick Harker, Philly Fed President, said that current economic conditions indicates there's no need for more policy tightening in September.
Harker clearly expects the Fed to hold interest rates until the impact of recent policy decisions is measured clearly in the economy.
Harker warned he doesn't expect an interest rate hike soon, and he expects US economy to head for a soft recession and a slowdown in the second half of the year.
On trading, Dow Jones fell 0.9%, or 340 points to 35,133, as S&P 500 fell 1.1%, or 49 points to 4,469, while NASDAQ fell 1.5%, or 212 points to 13,784.