Nikkei 225 May Follow S&P 500, JPY Price at Risk Post US Midterms

Asia Pacific Market Open – RBNZ, NZD/USD, US Dollar, Midterm Results, SP 500, China Trade

  • RBNZ leaves door open to cut, but NZD little changed as rate hike outlook was unaltered
  • US Dollar, SP 500 gained during Wall Street trade after 2018 midterm election results
  • Asian stocks may rally, sending JPY lower. Chinese trade statistics may sour market mood

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The New Zealand Dollar failed to find a meaningful reaction from November’s RBNZ interest rate announcement despite the central bank leaving the door open to a cut. Rates were left unchanged at 1.75% as expected and the OCR forecast track was left unaltered. RBNZ Governor Adrian Orr noted that they could consider a rate cut if GDP falls short of their estimates.

It looks as though the stronger third quarter inflation and jobs report failed to significantly alter the 2019 implied RBNZ rate outlook. Recent gains in the New Zealand Dollar were accompanied with near-term rate cut bets being taken off the table according to

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2018/11/08/Nikkei-225-May-Follow-SP-500-JPY-Price-at-Risk-Post-US-Midterms.html