The Reserve Bank of New Zealand maintains stability as scheduled and the EU summit will be held soon
On Wednesday (June 27th), U.S. President Trump’s remarks on easing trade tensions between China and the United States triggered a risk appetite, leading to a sharp drop in the risk aversion currency and prompting market capital to flow back into the United States. The U.S. dollar index continued its rally, rising sharply above the 95 mark. In addition, the European Union will soon hold a two-day EU summit.
The Reserve Bank of New Zealand kept the official discount rate unchanged at 1.75%, and the Fed's and New Zealand Fed's interest rate spreads are expected to increase. In addition, trade disputes caused by Trump underwent great pressure on New Zealand dollar-led commodity currencies, and the market has been bearish on the New Zealand dollar. The New Zealand dollar traded at a 0.68 mark against the U.S. dollar, hitting a seven-month low.
Oil prices jumped on Wednesday as US crude oil inventories plummeted, adding to supply concerns. Libya’s exports were uncertain, Canadian production was disrupted and the United States demanded that other countries stop importing Iranian crude oil from November.