NZ Policy Rate Decision Announcement: Have the Oceania Currencies Hit Bottom!? "February 12th Highlights and Event Schedule"

Yesterday was Chairman Powell's congressional testimony, but market reaction was limited.

U.S. stocks were negative at one point, but ended higher.

With risk-on sentiment, the yen and the franc were sold.

In addition, the euro, which is concerned about German political instability, was also sold.

Tokyo markets open after holidays with risk-on, and all eyes are on how far the global trend can continue.

◎ Today's Points of Focus

1) NZ Policy Rate

At 10:00 today, the RBNZ policy rate and statement will be released.

The forecast is unchanged, but attention is on the statement and the press conference.

Due to the impact of the coronavirus, the Chinese economy has been hit hard, and Australia—closely linked to the Chinese economy—and New Zealand, closely tied to Australia economically, are also expected to be economically affected.

We are watching how the RBNZ views these aspects and what policies it will implement accordingly.

Other points of focus include what indicators the policy decision will hinge on, and whether there will be a rate cut within the year.

2) Chairman Powell's Congressional Testimony

Yesterday, Chairman Powell gave congressional testimony before the House; today, he is scheduled to testify before the Senate.

I don't expect major changes in content, but the questions during Q&A will be noteworthy.

In yesterday's testimony, market reaction was limited.

If long-term yields continue to fall and the testimony weighs on stock prices, USD could weaken.

I will keep an eye on the testimony, stocks, and bonds.

◎ Today's Economic Calendar

Wednesday, February 12

New Hampshire Presidential Primary – results

10:00　NZDRBNZ policy rate and statement release

11:00　NZDRBNZ Governor speaks

17:30　SEKSweden policy rate announcement

18:50　EUR　ECB Executive Board member speech

22:30　USDHarker, President of the Philadelphia Fed, speaks (2020 voting member)

Thursday, February 13

00:00　USDPowell, Chairman of the Federal Reserve, speaks (Semiannual Congressional Testimony)

00:30　USD　Crude oil inventories

04:00　USD　Monthly budget statement

04:10　NZDRBNZ Governor speaks