April 24: Asian session
Asian stocks fell after an unexpected drop in US home sales signaled a housing recover in the world’s largest economy is running out of steam. MSCI Asia Pacific Index lost 0.3%. Nikkei 225 is down by 0.95%.
USD/JPY declined to 102.25, but is above yesterday’s low at 102.16. Yen held its first gain in nine days versus the dollar on speculation data tomorrow will show Tokyo inflation quickened the most in more than two decades, dimming prospects the Bank of Japan will expand stimulus.
New Zealand dollar was the mover, jumping on the RBNZ meeting outcome. As it was widely expected, RBNZ announced a rate hike by 0.25% to 3.00%. Regulator showed that more hikes are to come, but the timing remains uncertain. NZD/USD rose by more than 50 pips, touching $0.8635. AUD/USD consolidates in the $0.9285/9300 range. Gold slowed the downside over the past 2 days, recovering some ground to $1285.5.
EUR/USD rose to $1.3825, but is below yesterday’s peak at $1.3854. Euro remained higher before a report today forecast to show a gauge of German business conditions climbed to a 2-year high. GBP/USD edged up a bit to $1.6790.