ForexLive Asia-Pacific FX news wrap: RBNZ 50bp rate hike, as expected (NZD dips)

RBNZ news (read from the bottom up for the chronology)

Other:

USD/JPY
climbed back above 137 during the session with little in the way of
fresh news nor data. USD/JPY lows were circa 136.70 and the climb topped
out just over 137.20. The 50 point move didn’t trigger any comments
out of Japanese officials about the rise being too rapid.

EUR/USD
didn’t trouble parity again, in fact it didn’t trouble traders
much at all, sitting in a very tight range around 1.0030.

Cable
and AUD/USD added on small points.

As
did NZD/USD until the RBNZ announced its (widely expected) 0.5% rate
hike, taking New Zealand’s Official Cash Rate (OCR) from 2 to 2.5%.
NZD/USD dropped a little to lows circa 0.6110 (just under). The
Reserve Bank of New Zealand decision was accompanied by its ‘Monetary
Policy Review’ (which is not nearly as comprehensive as a Monetary
Policy Statement, we’ll get one of those at the next meeting,
announcement due August 18). The Review said, in part:

The
Committee is comfortable that the projected path of the OCR outlined
in the recent May Monetary Policy Statement remains broadly
consistent with achieving its primary inflation and employment
objectives – without causing unnecessary instability in output,
interest rates and the exchange rate. Once aggregate supply and
demand are more in balance, the OCR can then return to a lower, more
neutral, level.

That
is, no change to the OCR path was flagged.

There
was no press conference scheduled, again we’ll get one of those
following the RBNZ August decision.

Shanghai
COVID cases rose again, but new cases outside quarantine were
officially zero – a positive sign.

Oil
dropped in price but recovered all that loss.

ICYMI
– US CPI data is due today, Wednesday, 13 July 2022 at 1230 GMT
(8.30am NY time).

There was a fake leak on Tuesday US time, markets
are a minefield even with this garbage!

NZD/USD: