The rebound in tech confidence and AI, allowed a recovery in equity markets, but questions remain. The recent statements by New York Fed Chairman Williams, pointed to a rate cut in December, which was a boost to market confidence and the latest PPI data support that. The wholesale inflation rate was softer than expected, but questions surround the last Fed minutes. The USD was in retreat, allowing the EUR to jump to 1.1580, while the GBP headed back towards 1.3200.
The weaker reserve had little impact on the downtrodden commodity currencies, with the AUD hovering around 0.6450, while the NZD struggles to hold 0.5600. The lack of support for commodity currencies, stems from fears of a recession the US, as recent weak labour market data points to. All eyes will be on the market at 2.00pm NZT today when the RBNZ makes their OCR rate announcement. The press conference afterwards will also provide some insight into their intentions going forward.
