Reserve Bank holds Official Cash Rate steady at 1 percent

New Zealand Dollar Vs US Dollar 5 Minute Chart

New Zealand Dollar Vs US Dollar 5 Minute Chart

The New Zealand dollar is at a 1-week high, courtesy of the New Zealand central bank.

"Growth in global trade and manufacturing is weak and uncertainty remains high, dampening global business investment".

The Reserve Bank of New Zealand said aggressive easing earlier this year meant current settings were appropriate, but left the door open for more stimulus.

Against the euro EURCHF= , the franc gained as much as 0.3% versus the euro to 1.0904 francs per euro, strengthening to its highest levels since October 9 while it gained by a similar margin against the dollar.

"Market expectations have been moving around considerably", from a cut being a 50:50 possibility to a 90 per cent likelihood, he said.

US consumer prices jumped by the most in seven months in October, a report from the Labor Department showed, as the cost of healthcare surged by the most in more than three years.

The currency has been one of the worst performing majors this year, dropping 4.7%.

Wholesale interest rates also rose sharply.

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Elsewhere, the New Zealand dollar provided the standout performance on Wednesday as it stood set to notch its biggest daily gain in a year after the central bank stunned investors by keeping interest rates on hold. -China trade negotiations and awaited testimony from Federal Reserve Chairman Jerome Powell before a congressional committee at 1600 GMT.

Boosting demand for safe-haven assets were the police crackdown against protesters in Hong Kong and a speech by U.S. President Donald Trump in which he threatened to raise tariffs on China and criticized European Union trade policies before a November 14 deadline to decide whether to raise tariffs on European and Japanese carmakers.

Against the Japanese yen the dollar was a touch weaker at 108.93 yen - not far below the 5-1/2-month high of 109.48 yen it hit last week. NZD/JPY rallied from 68.96 to 69.56, touching the high of 69.89 during the trading session.

The Australian dollar was pinned at $0.6842 by weak, but largely expected, wage data.

The British pound GBP=D3 remained broadly steady around the $1.2840 line as latest opinion polls forecast a lead for the ruling Conservative Party.

Trump's speech at the Economic Club of NY mostly reprised well-worn criticism of the U.S. Federal Reserve for failing to cut interest rates deeply enough and rhetoric about China's "cheating" on trade.

Imre Speizer, senior markets strategist at Westpac, said the foreign exchange and interest rate markets were positioned for a cut.

China's yuan weakened past the 7-per-dollar mark after the speech and fell a little further to 7.0212 per dollar in onshore trade on Wednesday.

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