Posted On: July 06, 2012
From Wall Street Journal
The PBOC unexpectedly cut its benchmark lending by 0.31 percentage point and its one-year deposit rate by 0.25 percentage point.
However, Ms. Martin added that the mood had sobered as the European Central Bank cut rates.
"This was as expected, but it resulted in a general decline in risk appetite with (ECB) President (Mario) Draghi adding comments such as 'economic growth continues to remain weak with heightened uncertainty weighing on confidence,'" she added.
During the New Zealand session the currency remained rangebound as the market focused on the outcome of U.S. non-farm payrolls data due later in the global day.
"Tonight's non-farm payrolls, certainly for the Kiwi versus the U.S. (dollar), is going to be the big mover. I think the markets have been anticipating this all week," Western Union Business Solutions Corporate Dealing Manger Chris Hunter said.
The ADP report overnight showed an estimated 176,000 jobs added in June, but it has been out of sync with non-farm payrolls for the last couple of months so the market wasn't getting too excited, he said.
Read full article (WSJ login required)
Category: Media Coverage
Foreign Exchange Services for Business
With a focus on payment services, Western Union Business Solutions enables businesses of all sizes to send funds internationally through our global payment solutions.
See our available FX payment services