The Reserve Bank of New Zealand announced a third large rate cut of 0.50% earlier today while signaling the pace of cuts would now slow down.
- Earlier today, the Reserve Bank of New Zealand made its third 0.50% rate cut in the current cutting cycle, as was widely expected, reducing its Official Cash Rate from 4.25% to 3.75%. The Governor of the Bank said the pace of future cuts would now slow down. The Kiwi has held its value since the announcement.
- Global equities are mostly higher, driven higher by a rally in technology stocks. The rise has been even more pronounced in trading in futures on the US-based NASDAQ 100 Index and the S&P 500 Index which reached new record highs yesterday. Trend traders will be interested in being long of these indices. A survey just released by the Bank of America shows investors are at their most bullish on risk sentiment in 15 years.
- Gold is showing bullish momentum again after closing higher yesterday following Friday’s sizable decline. We may soon see another test of the recent all-time high just above $2,942 per ounce.
- Corn futures rose again yesterday to surge to a new 1-year high.
- Natural Gas made a strong gain yesterday, with some spot instruments trading at new long-term highs on a strong increase of more than 6%. Natural Gas futures are more subdued, as they have not yet made bullish breakouts to new highs.
- In the Forex market, the New Zealand Dollar has been the strongest major currency since today’s Tokyo open, while the weakest major currency has been the Swiss Franc.
- President Trump is now floating the idea of new 25% tariffs on all imports of automobiles, drugs, and computer chips.
- Canadian CPI (inflation) data came in as expected rising month-on-month by only 0.1%, although some of the CPI metrics were a fraction higher than expected.
- There will be releases today of UK CPI (inflation) data and the US FOMC Meeting Minutes.
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