NZ dollar falls as market weighs 'hawkish'

  • NZ dollar falls as market weighs 'hawkish'

NZ dollar falls as market weighs 'hawkish'

The euro EUR=EBS slipped 0.5 percent to $1.1740 in early trades, its lowest level since August 23.

Newly appointed Atlanta Federal Reserve Bank president Raphael Bostic also signalled a willingness to tighten monetary policy, saying there were more consistent signs of inflation.

Labour market conditions that are not as tight as official bodies believe could be one of these mistaken assumptions, according to Yellen, so too is the FOMC's estimation of the extent to which changes in employment impact on inflation. The press conference supported the dollar, which managed to rise by nearly half a percent against the euro, reaching levels of 1.1756 euros per dollar.

Rabobank strategists say that if the tax reforms raises the chances of the USA sustaining a 3 percent growth rate, then it will be a significant boost for the dollar which has suffered this year and is poised for its biggest annual drop since 2004.

Despite its headwinds, lingering U.S.

Investors were also optimistic about the United States tax reforms expected to be announced by Trump's administration and Republicans in Congress today at 1920GMT. With President Trump due to reveal tax reform plans, the rally may extend to the next resistance at the 94 level. For her part Janet Yellen stuck with a modestly hawkish tone and, when she had finished speaking, the chances of an interest rate rise in December was still priced at well above 70%.

Investors also sold their holdings of government paper after Federal Reserve Chairwoman Janet Yellen on Tuesday outlined the Fed's reasoning for an additional rate increase this year.

The index is down by 9.7% since US President Donald Trump's inauguration. In my view, it strengthens the case for a gradual pace of adjustments.

Not only is there a "high probability" of a USA rate hike in December, but the so-called dot-plot - which charts expectations of individual Fed members - suggests policymakers still envision three rate hikes next year.

Also scheduled for release at 10:00 a.m. ET is a report on US consumer confidence, which is expected to show it fell to 120 in September from 122.9 in August. In the previous session, prices fell 1.3% in what was the biggest loss in over two weeks.

Dudley nodded to the three devastating hurricanes that have struck parts of the US south and the Caribbean, noting their effects will likely make it more hard to interpret economic data in coming months. The index had been expected to dip by 0.5%.

Nasdaq 100 e-minis were up 5.5 points, or 0.09 percent, on volume of 29,784 contracts. US crude stocks were reduced by 761,000 barrels last week, the American Petroleum Institute announced on Tuesday. The euro was at $1.1756-1757, down from $1.1812-1813, and at ¥132.48-49, up from ¥132.01-02.