Though the Reserve Bank ofNew Zealand has yet to confirm it, rumors have been swirling in the markets that the central bank intervened in the FX markets after NZDUSD plunged 50 points at the opening of yesterday?s Asian session.
However, their attempt was to no avail as the pair crept higher and ended the New York session just below 0.7550. Once again, the markets have proved that carry trades remain the name of the game. Meanwhile, elevated commodity prices kept the Australian dollar buoyant as well, despite a failed test of 0.8450 during early European trading. The Canadian dollar was not quite as fortunate ahead of Tuesday?s CPI data, with USDCAD holding above 1.0700. The Bank of Canada?s core measure is forecasted to ease back to 2.3 percent from a four year high of 2.5 percent, which may quell some concerns of policy tightening next month. Nevertheless, as long as the figure holds above the Bank?s 2.0 percent target, a rate hike to 4.50
New Zealand Dollar Holds above 0.7500 Despite RBNZ Intervention
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