ForexLive Asia FX news wrap: The USD gained further in Asia post-FOMC trade

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Resonances of the Federal Open Market Committee and President Powell’s hawkish statement at his press conference continued today in Asian time. Yields on UST were firm and higher.

EUR, GBP, CHF all traded lower against the US dollar. USD / JPY rose early to above 114.70 but decreased touch from those highs to retest 114.50.

AUD, NZD and CAD have all lost ground.

We had data from New Zealand today, a more than 30-year high for y / y CPI, with very broadly based prices rising across sectors in the economy. The implication for the Reserve Bank of New Zealand is a confirmation of rates yet to come and probably even faster to an even higher end point (data dependent previously of course, but based on today’s CPI result apparently lock).

As mentioned NZD / USD fell on the session. It barely won a handful of

ticks

about the rising inflation data before leaving.

US equities index futures on Globex trading have also dropped. Locally, Japan, Hong Kong, China and Australian stocks all fell.

NZ inflation (chart by Goldman Sachs):

nz inflation on January 27, 2022

Source

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