ForexLive Asia-Pacific FX news wrap: RBNZ 50bp cash rate hike

• Fed’s Bostic will be speaking today, Wednesday, 5 October 2022
• NZD/USD is back to where it started, fully retraces its post-RBNZ spike
• Goldman Sachs launches Sonar Dark X algo – to maximize non-displayed liquidity capture
• CHF traders – heads up for a SNB speaker Wedmesday, 5 October 2022 – Maechler
• European Central Bank is holding a non-monetary policy meeting Wednesday, 5 October 2022
• More detail on White House efforts to stop OPEC from cutting oil output – Yellen unleashed
• Reserve Bank of New Zealand cash rate hike as expected – full text
• RBNZ cash rate hike by 50bp, as expected
• Japan Jibun Markit Services PMI for September (final): 52.2 (prior 49.5)
• Bank of Korea says consumer inflation to stay high around 5 to 6% for some time
• The key reason the RBA slower rate hike is not applicable to elsewhere
• EUR/USD – “high risk of a return to 0.9500 over the coming weeks”
• Ireland’s central bank raises 2023 CPI projections, lowers GDP forecast
• Reminder: Chinese markets are closed today, and all week. Hong Kong markets return today.
• South Korea data:September core inflation has risen at its fastest y/y since December 2008
• Goldman Sachs say USD/JPY could reach 155 & GBP/USD drop under parity – here’s how
• Goldman Sachs rank recession risk: 1. UK (already in one), 2. Canada, 3. USA, 4. Australia
• Australia S&P Global Services PMI (Final, September) 50.6 (prior 50.2)
• Reports that the US is lobbying OPEC+ nations not to cut oil output (… well, d’uh)
• Gold shortage? Banks diverting physical away from India in favour of China and Turkey.
• Forexlive North American FX news wrap: US stocks soar for the 2nd day helped by JOLTs jobs
• An unnamed OPEC source says the cartel is considering output cuts up to 2 mn barrels / day
• Trade ideas thread – Wednesday, 5 October 2022
• Oil – private survey of inventory shows headline draw vs. expected build
• US stock markets soar for the second day in a row

The
Reserve Bank of New Zealand met market expectations today with a 0.5%
rise for its cash rate target, taking it from 3.0% to 3.5%. This was
the fifth consecutive 50bp rate rise from the Bank.

NZD/USD
popped higher on the statement, to highs just over 0.5800 before
dropping back to be, as I update, barely changed on the session.

As
the kiwi retraced its rise FX nearly across the board fell against
the USD, although it was not a day of wide ranges. AUD, GBP, EUR, CAD
all fell away a little.

USD/JPY
was a bit of an exception. It dropped to lows under 143.60 early in
the session but has since recovered to a high above 144.30. This is a
decent range for the Asian timezone. There was little specific news
for it.

The
RBA decision yesterday to slow rate hikes (+25bp from the RBA vs, +50
expected) was a factor in the bullish risk appetite seen on Tuesday.
The RBNZ today, though, ploughed ahead with its 50bp hike, which may
give a pause to risk in the day coming up.

News
flow was light, and data releases were lower-tier in importance.

Regional
equities gained, taking their lead from another strong up day on Wall
Street.

The
OPEC+ meeting is ahead for the day, with murmurings of an up to 2mn
barrel/day output cut. The US is lobbying, hard, for no cut from the
cartel (see bullets above).