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Free AccessRisk Aversion Dominates, Overshadows Hawkish RBNZ Bets
NZD blipped higher in early Asia-Pac hours after Westpac brought forward their forecast of the first OCR hike to November this year from August 2022, a day after ASB and BNZ said they expect the tightening cycle to begin in November. The implied odds of a hike by the November meeting ticked higher to ~87% at typing from ~80% yesterday (per BBG WIRP tool). That being said, the kiwi has given away its modest gains, as Tuesday's risk aversion has seemingly lingered on.
- JPY is currently the best performer in G10 FX space, leaving AUD to bring up the rear in mildly risk-off trade. AUD/JPY has shed around 15 pips, extending losses to a fresh two-week low.
- FOMC Jun MonPol meeting minutes, German & Norwegian industrial output data, Italian retail sales and comments from Fed's Bostic & Riksbank's Ohlsson are on the radar today.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.