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New Zealand's financial system well-positioned for higher interest rate environment

In May 2023 Financial Stability Report, RBNZ Governor Adrian Orr highlighted that the country's financial system is well-placed to handle the higher interest rate environment and international financial disruptions. Global inflation continues to persist at levels significantly above central banks' policy targets. Although central banks have recently slowed pace of tightening, the full impact of previous tightening measures remains to be seen.
Adrian Orr Stability Report

Dollar Weakens as Markets Anticipate Last Fed Rate Hike; Yen Gains Amid Cautious Sentiment

Dollar weakens broadly in today's Asian session as markets await what could be the last Fed rate hike in the current cycle. Risk sentiment is on the downside, with stock selloff carrying over from the US to Asia. Despite this, the greenback sees no apparent support. Conversely, Yen benefits from cautious sentiment a decline in benchmark treasury yields. Oversold condition is also helping the Japanese currency slightly.
New Zealand Hong Kong Jerome Powell Adrian Orr Ben Dorber Bryan Downes

Dollar Soft Ahead of FOMC Rate Decision, Markets Await Powell's Guidance on Pause

Dollar remains weak in early US session, despite strong ADP job data, seeing only modest gains the Australian and Canadian Dollars. However, the selloff remains contained, even against strong Yen and Swiss Franc. Traders are evidently holding their bets as they await FOMC rate decision. A 25bps hike to 5.00-5.25% is widely anticipated, and it is unlikely to surprise the market. The primary question is whether Chair Jerome Powell will explicitly indicate a pause following today's move.
New Zealand Hong Kong Bryan Downes Jerome Powell Adrian Orr Ben Dorber

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