The Japanese Yen eased on Wednesday morning after the BoJ Deputy Governor indicated that the Japanese central bank would not raise interest rates if global markets remained unstable. This statement has calmed the market and unwound concerns about Yen carry trades. Meanwhile, the dollar has regained strength, with the dollar index (DXY) climbing above the $103 mark.
NZDUSD stands at risk for a larger correction following the Reserve Bank of New Zealand (RBNZ) meeting as the exchange rate breaks out of the monthly opening range.
The RBNZ interest rate decision may fuel a larger rebound in NZDUSD as the central bank is expected to keep the official cash rate (OCR) at the record-low of 1.50%.
NZD/USD stands at risk of giving back the rebound from the monthly-low (0.6482) as the RBNZ endorses a ‘downward bias’ for the official cash rate.