Dollar keeps poise ahead of Fed minutes, kiwi falls after big rate cut
Updates with prices as of 0425 GMT
By Brigid Riley
TOKYO, Oct 9 (Reuters) -The dollar drifted sideways on Wednesday, giving some relief to the yen and other major currencies after a sharp rally to a seven-week high last week, as investors paused to assess the interest rate outlook for the United States.
The New Zealand dollar NZD=D3 slumped to its lowest since Aug. 19 at $0.60705, after the Reserve Bank of New Zealand (RBNZ) cut interest rates by 50 basis points and left the door open to yet more aggressive monetary easing.
The sparse U.S. data calendar this week provides a pause after the strong jobs report last Friday sent the dollar rallying and had markets tempering the expected scale of upcoming interest rate reductions.
On Wednesday, investors will get minutes of the Federal Reserve's September meeting, which will show discussions about what at the time had appeared to be a deteriorating labour market that ended with all but one policymaker agreeing to a 50-basis point cut.
But the robust nonfarm payroll data has seen markets reprice near-term Fed rate cut expectations. Investors now have about an 85% chance of a quarter basis point reduction priced in, as well as a slim probability the Fed will leave rates unchanged, the CME FedWatch tool showed.
The U.S. September Consumer Price Index report on Thursday will the main piece of data this week.
"U.S. inflation data this week and upcoming corporate earnings will be key to sustaining the U.S. dollar rebound and will need to reinforce the US exceptionalism narrative," analysts at Westpac IQ wrote in a note.
The dollar index =USD, which measures the greenback against a basket of currencies, edged up 0.11% to 102.6, not far from Friday's seven-week high of 102.69.
The euro EUR=EBS was down 0.14% at $1.0965, while the pound GBP=D3 slid 0.15% to $1.3083, close to the more than three-week low of $1.30595 it touched on Monday.
Dollar/yen traded in a narrow range, last hovering around 148.35 yen JPY=EBS, after touching a seven-week high of 149.10 on Monday.
"Markets will not be keen to pile into JPY shorts ahead of election uncertainty for both the U.S. and Japan," said Wei Liang Chang, a currency strategist at DBS.
The yen has been whiplashed since Japan's new Prime Minister Shigeru Ishiba, known for being a critic of easy monetary policy, surprised markets with recent remarks that the nation is not ready for further rate hikes.
Ishiba has set a snap election for Oct. 27, ahead of the Bank of Japan's October monetary policy meeting and the U.S. presidential election next month.
Verbal warnings about rapid currency moves issued by Japanese authorities earlier this week should "further restrain" dollar/yen from rising to the 150 range, Chang said.
Elsewhere, the kiwi was last down 0.77% at $0.60885 as investors assessed the RBNZ's policy decision and its clear dovish signal suggesting many more rate reductions were on the cards in coming months. A majority of economists in a Reuters poll had predicted Wednesday's 50 bps cut.
The Australian dollar AUD=D3 was licking its wounds, having slid on Tuesday to $0.6715, its lowest since Sept. 16, after minutes from the latest meeting of the nation's central bank came off as dovish. It last traded not far off that low, down 0.31% at $0.6726.
Investors remain focused on China after a volatile day in Chinese and Hong Kong markets in the previous session.
Beijing said on Tuesday it was "fully confident" of achieving its full-year growth target but refrained from introducing stronger fiscal steps, disappointing investors who had banked on more support from policymakers to get the economy back on track.
The offshore yuan CNH=D3 was mostly unchanged at 7.0704 per dollar.
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Brigid Riley; Editing by Edwina Gibbs & Shri Navaratnam
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إخلاء المسؤولية: تتيح كيانات XM Group خدمة تنفيذية فقط والدخول إلى منصة تداولنا عبر الإنترنت، مما يسمح للشخص بمشاهدة و/أو استخدام المحتوى المتاح على موقع الويب أو عن طريقه، وهذا المحتوى لا يراد به التغيير أو التوسع عن ذلك. يخضع هذا الدخول والاستخدام دائماً لما يلي: (1) الشروط والأحكام؛ (2) تحذيرات المخاطر؛ (3) إخلاء المسؤولية الكامل. لذلك يُقدم هذا المحتوى على أنه ليس أكثر من معلومات عامة. تحديداً، يرجى الانتباه إلى أن المحتوى المتاح على منصة تداولنا عبر الإنترنت ليس طلباً أو عرضاً لدخول أي معاملات في الأسواق المالية. التداول في أي سوق مالي به مخاطرة عالية برأس مالك.
جميع المواد المنشورة على منصة تداولنا مخصصة للأغراض التعليمية/المعلوماتية فقط ولا تحتوي - ولا ينبغي اعتبار أنها تحتوي - على نصائح أو توصيات مالية أو ضريبية أو تجارية، أو سجلاً لأسعار تداولنا، أو عرضاً أو طلباً لأي معاملة في أي صكوك مالية أو عروض ترويجية مالية لا داعي لها.
أي محتوى تابع للغير بالإضافة إلى المحتوى الذي أعدته XM، مثل الآراء، والأخبار، والأبحاث، والتحليلات والأسعار وغيرها من المعلومات أو روابط مواقع تابعة للغير وواردة في هذا الموقع تُقدم لك "كما هي"، كتعليق عام على السوق ولا تعتبر نصيحة استثمارية. يجب ألا يُفسر أي محتوى على أنه بحث استثماري، وأن تلاحظ وتقبل أن المحتوى غير مُعدٍ وفقاً للمتطلبات القانونية المصممة لتعزيز استقلالية البحث الاستثماري، وبالتالي، فهو بمثابة تواصل تسويقي بموجب القوانين واللوائح ذات الصلة. فضلاً تأكد من أنك قد قرأت وفهمت الإخطار بالبحوث الاستثمارية غير المستقلة والتحذير من مخاطر المعلومات السابقة، والذي يمكنك الاطلاع عليه هنا.
