- Crude Oil continued its recovery from multi-year lows, currently up 13.1% o the week and 1.9% on the session, despite the fact data shows the over-supply is getting worse. The rally has been helped by a weaker USD and short-closure of an overcrowded bearish camp.
- FED kept rates unchanged and said it was monitoring volatility of markets to help assess what impact it will have on the US economy. The statement removed the words 'reasonably confident' regarding their confidence towards 2% inflation. Global stocks saw this as a negative and to see bonds and gold appreciate from safe haven flows.
- RBNZ held interest rates at 2.5%, citing house price inflation as a financial stability risk and conceding that inflation will take longer than expected to reach target than previously estimated. The Kiki Dollar sold off across the boa5rd following the statement as traders assume a rate cut may be closer than Decembers statement suggested.
Nylon Handover: FED and RBNZ hold steady
The two Central banks held rates overnight but will continue to monitor global developments closely, having delivered their first monetary policy statements in one of the most turbulent starts to the year in recent history.