NZD Shows Strength After Hawkish Tone From RBNZ, As Well As Some Banks Forecast Rate Hike As Early As August
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MARKET RECAP
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1️⃣ Asian stock markets traded lower as concerns of a surge in inflation resurfaced after US annual inflation rose to 5.4%, hitting a 13-year high.
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FOREX RECAP
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1️⃣ The U.S. dollar soared after the U.S. inflation rate hit a new high since August 2008 at 5.4% for June. Earlier the Federal Reserve reiterated that the rise in inflation in the United States was only temporary. But today’s data suggests inflation is likely to remain high.
2️⃣ The NZD surged after the Reserve Bank of New Zealand had kept its interest rate at a record low of 0.25%, however, it will halt buying on additional assets under the large-scale asset purchase (LSAP) program from 23 July 2021. ASB and ANZ banks revised the RBNZ interest rate hike forecast to August this year.
3️⃣ The sharp decline in the EUR affected the CHF.
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COMMODITIES RECAP
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1️⃣ WTI crude oil traded around $74.6 a barrel on Wednesday after touched $75 level the previous session, amid concerns over future demand.
2️⃣ Gold surged above $1,810 as investors turned to gold amid growing concerns that the COVID-19 variant delta could slow down the global economic recovery.
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Economic Data Focus On Today
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1️⃣ RBNZ Rate Decisions for July (10:00 Malaysia Time) — No Prediction — No prediction from the central bank.
2️⃣ UK CPI for June (14:00 Malaysia Time) — Bullish Prediction — In both manufacturing and services, the PMI reports record price growth.
3️⃣ Eurozone Industrial Production for May (17:00 Malaysia Time) — Bearish Prediction — Weaker German industrial production.
4️⃣ US PPI for June (20:30 Malaysia Time) — Will Update — Will update after US CPI.

5️⃣ BOC Rate Decisions for July (22:00 Malaysia Time) — No Prediction — No prediction from the central bank.