China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
RBA Signals More Rate Hikes Possible as Australia Battles Stubborn Inflation 
BOJ Expected to Hold Rates Steady While Signaling More Hikes Ahead 
BOJ Rate Decision in Focus as Sticky Inflation, Weak Yen Shape USD/JPY and Nikkei Outlook 
RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
The RBNZ is expected to remain on hold through this year at least, and that seems to quite agreeable. As a result, that should cap 2yr NZ yields at 2.30%, while a slight loss of economic momentum, both in NZ and in developed economies could see the lower bound at 1.95% tested occasionally as markets flirt with a rate cut.
In view of that, contemplating the 2019 outlook, it has been adopted a cautiously defensive position in part expressed through short NZDUSD. While we uphold our NZD shorts given expectations of a dovish-to-unchanged monetary policy and also given its sensitivity to global growth. The main event this week for New Zealand was the soft 4Q CPI report.
We don’t think this justifies a rate cut from the RBNZ in 2019, even though we do expect downgrades to inflation (mostly on oil) and growth and thus a dovish spin on the outlook (4Q CPI not quite the spark for the RBNZ). Please be noted that the AED we recommended back in November, we still retain short NZDUSD exposure in the outright spot. Courtesy: JPM
Currency Strength Index: FxWirePro's hourly NZD spot index is inching towards -153 levels (which is bearish), while hourly USD spot index was at 91 (bullish) while articulating (at 09:16 GMT).
For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex
