Asian Recap: NZD Soars After Announcement From RBNZ, While CAD Weighed By Sharp Drop In Oil Prices
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MARKET RECAP
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1️⃣ Asian stock markets were mostly closed in negative territory, driven by current sentiment.
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FOREX RECAP
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1️⃣ US dollar remained pressured as Powell reiterated that the labor market is still not fully strong, and the recent surge in inflation is seen to be temporary. He also stressed that the Federal Reserve is still a long way from considering raising its interest rates.
2️⃣ AUD soared after the RBA has decided to continue its bond-buying program at AUD 5 billion a week until this September and will reduce its buying program to AUD 4 billion a week until at least mid-November 2021.
3️⃣ NZD jumped as the RBNZ is considering policy tightening. This decision is based on a memorandum of agreement updated by the finance minister. The probability for the RBNZ to raise interest rates in August increased to 80% from 65% previously.
4️⃣ JPY benefitted amid a sharp decline in US Treasury yields.
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COMMODITIES RECAP
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1️⃣ WTI crude oil prices fell more than 3% on Monday, trading around the $ 71 a barrel level after Reuters reported that the spread of Delta’s COVID-19 variant became a new risk for China as the virus spread to cities.
2️⃣ Gold traded around $ 1,810 as concerns about legislation in China eased.
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Economic Data Focus On Today
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1️⃣ RBA Rate Decision for August (12:30 Malaysia Time) — No Prediction — No prediction from the central bank.