ForexLive Asia FX news wrap: RBNZ sends NZD lower

Forex news for Asia trading Wednesday 13 May 2020

RBNZ:

It was a weak sort of session for AUD and NZD following on from the
same during US time (US-China tensions stoked yet again, this time by
a US Senator) but the Reserve Bank of New Zealand monetary policy
decision gave the kiwi $ an extra push lower.

The
RBNZ left its cash rate on hold at 0.25% and provided projections of
that rate to remain through to March 2021. The Bank did allow that
the rate may go negative in the future (it appears they have concerns
about how bank systems will cope with negative rates). The RBNZ also
near doubled its QE program, from the current 33bn to 60bn (and
allowed it could go higher still).

NZD/USD
was marked down to lows under 0.6030.

There
was plenty of news and data during the session but none of it too
impactful on market movement.

AUD,
as noted above, was weaker earlier but as I post is net little
changed on the session. EUR, GBP also both little changed against the
US dollar. CAD is a little higher.

A
north-eastern city in China imposed partial lock down restrictions as
cases flared (see bullets above)

Still
to come is Reserve Bank of New Zealand Governor Orr press conference
at 0300GMT.