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The Hang Seng Index turned to decline, with the Hang Seng Tech Index now down 0.33%.Cherelle Murphy, Chief Economist for Oceania at Ernst & Young, stated on August 14 that Australias July job market data showed a decline in the unemployment rate and solid growth in full-time employment, but this is unlikely to have a significant impact on the Reserve Bank of Australias Monetary Policy Committees next meeting at the end of September. She added that despite this, the economy still needs more stimulus due to weak business investment and risks posed by the international situation, so further interest rate cuts seem likely before the end of the year.Piper Jaffray: Raised price target on Cisco (CSCO.O) from $64 to $70.According to data from the Atlanta Federal Reserve on August 14, the market currently sees a 65% probability of a 25 basis point rate cut in December and a 15% probability of a 50 basis point cut. Powell may attempt to temper these expectations, as the Fed may not want the market to perceive a rate cut as a foregone conclusion. Ethan Harris, former chief economist at Bank of America Securities, stated that if the market has fully priced in a rate cut by the time of the September Fed meeting, it will be difficult for the Fed to decide to hold rates steady, as the central bank prefers not to surprise the market on decision day. Powell will use his speech at the Jackson Hole symposium to hint that a September rate cut remains uncertain. Alan Zentner, chief economic strategist at Morgan Stanley Wealth Management, stated that the most important question now is whether Fed officials will challenge market expectations. Fed officials who disagree with a September rate cut are expected to publicly voice their opinions. If they believe the market is misjudged, they will speak out, as they have a responsibility to guide market expectations.NIO (NIO.N) announced that the all-new ES8 will be released on August 21.

AUD/NZD falls 60 pips as RBNZ meets market expectations for a 50 bps rate hike

Alina Haynes

Feb 22, 2023 15:18

As the Reserve Bank of New Zealand (RBNZ) issued its much awaited interest rate decision early Wednesday morning in Europe, the AUD/NZD pair dropped almost 60 pips to 1.0980. In doing so, the cross-currency pair disregards geopolitical concerns regarding China and North Korea, as well as concerns of a less aggressive RBNZ response in the wake of natural disasters in New Zealand.

 

In spite of this, the RBNZ announced its eleventh rate hike as officials attempt to control inflation fears, increasing the benchmark rate by 0.50 percentage points to 4.75 percent, for a total increase of 1.50 percentage points. In the quarterly Rate Announcement that followed the RBNZ's decision, it was said, "There are early signs of pricing pressures abating." The same should apply to the AUD/NZD currency pair bearish.

 

Other from this, the most notable market sentiment detractors were the remarks of US Secretary of State Antony Blinken and Russian President Vladimir Putin. Notwithstanding this, US Secretary of State Blinken indicated that the United States fears China may provide military help to Russia. Similarities exist between the market issues of the U.S.-Taiwan trade agreement. Russia terminated its nuclear arms agreement with the United States and pledged to maintain its military presence in Ukraine.

 

Meanwhile on Tuesday, Russian President Vladimir Putin addressed both houses of parliament in his state of the nation address to the Russian Federal Assembly. During the speech, Russian President Putin emphasized the geopolitical turmoil surrounding Ukraine by stating, "Our mission is to drive our economy to new horizons." Similarly, US Deputy Treasury Secretary Wally Adeyemo indicated on Tuesday, "The United States and its partners will apply additional sanctions this week to continue isolating Russia over the conflict in Ukraine."

 

US 10-year and 2-year Treasury note rates fluctuate near the three-month highs achieved the day before, while S&P 500 Futures record moderate gains despite Wall Street's negative closing price.

 

After monitoring the first reaction to the RBNZ's announcement, AUD/NZD pair traders should focus on risk triggers, particularly those pertaining to China and Russia, to determine the pair's direction. If geopolitical concerns continue to threaten market optimism, the price may continue to decrease.



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