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ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

Australian Dollar surges after RBA surprised the markets by resuming rate hike today. In addition, tightening bias is maintained even though the tone is softened. New Zealand and Canadian Dollars trail closely, boosted by a slightly positive risk sentiment. On the other hand, Japanese Yen continues to be the runaway loser in the market. Dollar is reversing some of this week's gains. European majors are mixed, with Sterling on the weaker side than Euro and Swiss Franc.

New Zealand’s banking system remains resilient as loans to households and businesses steadily reprice to higher interest rates. Debt servicing costs have risen significantly from historically low levels during the pandemic. For households with a mortgage, ...

According to RBNZ Financial Stability Report, debt servicing costs for households with mortgages are expected to more than double by the end of the year. Despite this, household balance sheets remain resilient, with most having substantial equity buffers. Early-stage arrears have increased but remain low compared to post-Global Financial Crisis levels. Banks' strong capital positions allow them to support customers, and borrowers facing stress are encouraged to seek assistance from their banks.

Forex traders are probably starting to put up guards ahead of the key events in FOMC rate tomorrow, ECB on Thursday, and NFP on Friday. Australian Dollar remains the top performer today, bolstered by RBA's unexpected rate hike. However, there is no follow through buying after the initial spike. Meanwhile, Yen is attempting a recovery, though momentum appears weak. Sellers have shifted their attention to Canadian Dollar today, while European majors also show some weakness. Notably, Euro has shown no reaction to the released CPI data.