 New Zealand Dollar has taken a hit in Asian session after RBNZ delivered a widely expected 50bps rate cut. With excess capacity in the economy, further policy easing is expected, and some economists foresee an additional 50bps rate cut in November. The central bank would continue loosening in the first half of next year, though a return to a more gradual pace of policy changes is likely. Australian Dollar is also facing pressure, as risk sentiment across the Asian markets has soured, with China at the heart of investor concerns. The Shanghai SSE index has wiped out the post-holiday gains seen yesterday, while Hong Kong equities remain near their lows following Tuesday’s selloff, which was the steepest since the 2008 financial crisis.... |
