RBNZ Up Next
Over the next 36 hours, three central banks are due to issue policy decisions, and Australian employment numbers are also due. In the meantime investors seem disinclined to shift positions aggressively, although USDJPY is still being weighed down by continued uncertainty over the parliamentary ratification process for the proposed new BoJ leadership. We are not overly concerned here – even though the main opposition party (DPJ) has announced its intention to oppose Kikuo Iwata for Deputy Governor, he is still likely to secure parliament’s stamp of approval thanks to support from other smaller opposition parties. The vote itself is likely to happen on Friday, removing yet another obstacle to USDJPY’s ascent from here. Before the SNB and Norges bank give their verdicts on Thursday, attention will focus on whether the RBNZ sees any risks to growth arising from the drought which is currently afflicting the country and which has held back NZDUSD over recent days – new quarterly forecast revisions will be key here.
Click here to read the full report: UBS
UBS Investment Bank