USD moves cautiously awaiting US CPI data
The ECB is expected to cut interest rates by 25 basis points in October
RBNZ aggressively eases policy, 'cut rates' by 50 basis points
Although the war situation in the Middle East has eased a bit, the market sentiment that remains risky is seen to continue to give an advantage to the trade of the safe-haven currency US dollar even though the price movement is quite slow at the opening of the week.
Investors are also in cautious mode while awaiting important indicators at the end of the week through the latest United States (US) inflation report to be published.
This will be the main indicator for the Federal Reserve (Fed) after the employment report was observed last Friday.
The lack of important economic data at the beginning of the week to drive market movements is expected by analysts while today (Wednesday), statements by several Fed members will be in focus including Atlanta Fed President Raphael Bostic, Chicago Fed President Austan Goolsbee and Fed Deputy Chairman Phillip Jefferson .
Developments in Europe, the European Central Bank (ECB) is now expected to cut interest rates by 25 basis points at the October meeting and also the same amount in December according to 90% of economists polled by Reuters.
This situation is driven by the faster decline in inflation in the European zone where readings in the September report show inflation below the 2% level.
The focus of the market in the Asian session this morning was directed to the results of the policy meeting of the central bank of New Zealand which met the forecast of lowering the interest rate by 50 basis points.
After lowering interest rates by 25 basis points at the August meeting, the Reserve Bank of New Zealand (RBNZ) is seen to be more aggressive in lowering the latest interest rate from 5.25% to 4.75%.
The New Zealand dollar slipped ahead of the rate decision as investors weighed the central bank's comments on its monetary policy.
NZD's decline against the US dollar to $0.6100 marked a new low for a 7-week trading period.
