NZD Rises; JPY Drops Amid Risk-on Mood
18 Março 2025 - 2:09AM
RTTF2
The New Zealand dollar strengthened, and the safe-haven yen
weakened against major currencies in the Asian session on Tuesday
amid risk appetite, as traders continued to pick up stocks at
reduced levels following recent weakness. They also seemed
reluctant to make more significant moves ahead of the U.S. Fed's
monetary policy announcement on Wednesday.
Traders may also follow the latest geopolitical developments and
assess their impact on financial markets. Investor confidence was
raised by optimism for US-Russia peace talks, which contributed to
the NZD's rise as well as JPY's drop.
The optimism around China's stimulus initiatives continues to
provide strong support for the global risk mood.
Markets have been pricing in the possibility of the Bank of
Japan (BoJ) raising interest rates this year.
While the Fed is almost universally expected to leave interest
rates unchanged, traders will look to the accompanying statement
and officials' latest projections for clues about the outlook for
rates. The Bank of England, the Bank of Japan and the Swiss
National Bank are all scheduled to announce their monetary policies
later in the week.
The Fed is widely expected to leave interest rates unchanged,
with traders likely to scrutinize the accompanying statement as
well as officials' latest projections for clues about the outlook
for rates amid much uncertainty about the economic impact of
President Trump's trade policies.
Elsewhere, the Bank of Japan is set to hold the benchmark rate
at the current level of 0.5 percent on Wednesday.
The Bank of England is expected to take another pause on its
rate-cutting path Thursday while Switzerland's central bank looks
set to cut interest rates for the last time in the current
cycle.
The Kremlin confirmed that Russian President Vladimir Putin
would talk to the U.S. President Donald Trump by phone on
Tuesday.
Elsewhere, Israel carried out airstrikes in the Gaza Strip,
southern Lebanon and southern Syria on Monday, killing at least 10
people.
In the Asian trading today, the NZ dollar rose to more than a
1-month high of 87.20 against the yen and a 2-week low of 1.8723
against the euro, from yesterday's closing quotes of 86.99 and
1.8751, respectively. If the kiwi extends its uptrend, it is likely
to find resistance around 88.00 against the yen and 1.82 against
the euro.
Against the U.S. and the Australian dollars, the kiwi advanced
to more than 3-month highs of 0.5831 and 1.0951 from Monday's
closing quotes of 0.5823 and 1.0959, respectively. The kiwi may
test resistance around 0.60 against the greenback and 1.08 against
the aussie.
Meanwhile, the Japanese yen weakened against other major
currencies in the Asian session amid risk appetite.
The yen fell to near 2-month lows of 163.59 against the euro and
194.44 against the pound, from yesterday's closing quotes of 163.12
and 193.88, respectively. The next possible downside target for the
yen is seen around 165.00 against the euro and 195.00 against the
pound.
The yen slipped to nearly a 1-1/2-month low of 170.05 against
the Swiss franc, from Monday's closing value of 169.53. On the
downside, 172.00 is seen as the next support level for the yen.
Against the U.S., the Australia and the Canadian dollars, the
yen dropped to nearly a 2-week low of 149.88, nearly a 4-week low
of 95.56 and more than a 2-week low of 104.82 from early highs of
149.40, 95.33 and 104.49, respectively. If the yen extends its
downtrend, it is likely to find support around 155.00 against the
greenback, 99.00 against the aussie and 108.00 against the
loonie.
Looking ahead, Germany's ZEW economic sentiment survey results
for March and Eurozone foreign trade data for January are due to be
released in the European session.
In the New York session, Canada CPI for February, U.S. building
permits, housing starts, export and import price, industrial and
manufacturing production indices, all for February and U.S. Redbook
report are slated for release.
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