Asian Session Forex Update

USD is gaining momentum during the Asian session after comments from FED members yesterday that calm forex markets after the interest rate cut hysteria that started the previous week. Fed’s chairman Jerome Powell reiterated FOMC view that the case for lower rates has gain momentum but noted that the interest rate policy should not overreact. On the trade war front the Chinese embassy confirmed that China has halted Canadian meat imports in what it looks to a new chapter in trade tensions.

The Reserve Bank of New Zealand (RBNZ) kept interest rates unchanged at 1.50% as widely expected. The IMF noted that RBNZ’s monetary policy decision is appropriate to current inflation conditions. The NZDUSD initially dropped to 0.6592 but rebounded up to 0.6650. The Japanese yen is trading at 107.46 amid USD weakness, while the Australian dollar consolidates at 0.6966 close to recent high. Gold retreats to three days low at 1,407 while crude oil continues higher at 58.94.  Asian equities trading lower with the Nikkei 225 giving up 0.73 percent at 21,038.