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Asia session recap & ranges

Posted by Akhilesh Ganti on Feb 20, 2013 1:03:00 AM

New Zealand PPI came out weaker than expected but the Kiwi was unfazed by this as issues with the rest of the G7 economies have given this pair a seemingly unrelenting bid. Perhaps it was with this in mind that RBNZ governor Wheeler came out and stated that the bank will intervene when the circumstances are right. This promptly took the wind out of the NZD/USD's sails as it slumped back beneath 0.8400. In reality, there isn't much that they can do other than try and inject some risk into the notion that the Kiwi is a one way trade. They are keenly aware of this as evidenced by his quote that "the causes of the over-valuation partly lie in the spillover effects of the policies in the countries most severely hit by the global financial crisis". The Australian wage price index rose slightly but inflationary concerns do not appear to be a factor thus paving the way for the RBA to cut rates once again should the economy show signs of not responding to the cuts that have already been made. Japan posted a record trade deficit, further underlining the need to implement a policy to ignite growth and the key determinant for this will be the selection of the person most responsible for crafting such a policy, namely the next BOJ governor.



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