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Key indicators of the Asian market session

07 August 2019

Key indicators of the Asian market session

The Central Bank of New Zealand introduced a new wave of resentment by entering the cancellation on the probability of negative rates. The new Zealand Committee on monetary policy lowered the official rate by 50 basis points (to 1.00%), which led to a rapid increase in safe assets. Australia also took the brunt of the after innovations, because the Aussie and kiwi fell to multi-year lows.

 


In may, the Central Bank lowered the rate by 25 basis points, this was the first stage of decline for the last couple of years. Political structure of New Zealand stated that such actions will reduce the level of inflation in the country, even in the absence of additional funds.

 


Many investors moved to risky trades, after which the rate of the yen to the dollar and stuck in a stable position.

 


Because of the trade war between China and the United States, the yuan exchange rate drops to record-low numbers that will lead to a new conflict between the two States. Donald trump has published a defiant statement, calling Beijing a currency manipulator. A trade war between the world's leaders could undermine the world economy.

 


Despite the fact that a couple of weeks ago USD/EUR reached a three-week high - 1,1250 USD yesterday, the figures dropped to 1,1160 USD, but at the end of the day, the dollar stabilized to 1,200 USD.

 


The pound to dollar was trading between USD 1,2135-1,2210 USD, closing the day with a mark in 1,2156 USD. At today's rates is GBP/USD pair rose to USD 1,2160. Analysts say that investors should adhere to a South direction to trade and resources to find the exit point for sale.

 


The Japanese yen to the dollar today is trading with a decrease in the amount 106,10 JPY. In this situation, the forecasts of investors also agreed on one thing - it should move in a southerly direction.