Australian dollar and New Zealand dollar are sidelined in today’s Asian session after the strong upward rally against the U.S dollar yesterday.
New Zealand survey shows that manufacturing activity in February increased to its highest level since September.
BNZ Manufacturing index showed that PMI for the month of February is up 3 point from January and is now at 55.2. A manufacturing index above 50.00 is generally considered good for manufacturing sector and presumed that above this point manufacturing is expanding.
Reserve bank of New Zealand’s board meeting is scheduled to hold on next Thursday, investors are anticipating that RBNZ will keep the interest rate unchanged because the inflation result remain balanced, with drop in dairy prices globally and declining New Zealand dollar cancelling the effect of each other. It is anticipated that the RBNZ will hold the interest rate at 1.75% through late 2018, and any shift in language in its next meeting will be disappointing for New Zealand dollar.
In Australia there is busy next week, as there are several central bank speeches coming, which includes deputy Governor of Reserve bank of Australia Guy Debelle on March 22 in Singapore. RBA is also going to publish the minute of its last meeting held on 21st March. Investors will be looking for any comment on the housing market of country.
Yen is also trading in narrow range in today’s trading as investors are waiting for the outcome of G20 meeting in Germany and ahead of long weekend. Japan financial market and government offices will be closed on Monday for a national holiday. The bank of Japan’s decision to hold fire suggest the Japanese Yen will likely to be the primary funding currency.