Sentiment in financial markets continued to improve after the Bank of Japan indicated committing to extremely low interest rates at least through late 2019.
In contrast, solid U-S economic growth is likely to keep the Federal Reserve on track for another two hikes this year. The Fed’s preferred inflation gauge, the core personal consumption deflator, posted a benign 0.1% gain in June. The annual pace held steady at 1.9%.
The market will therefore keep a close watch on the US Federal Reserve monetary policy statement. Although no change is expected for tomorrow, traders would definitely look for any clues for future hikes.
Closer to home, New Zealand’s unemployment rate ticked higher to 4.5%, missing expectations of a steady reading of 4.4. However, their Employment Change figure came in at 0.5%, beating the forecast 0.4%.