FX Update: The Dollar has been lacking direction
FX Update: The Dollar has been lacking direction so far today, overall, though gained about 1% versus an underperforming New Zealand Dollar, which dropped sharply on the lead of the RBNZ's dovish guidance after the central bank left the official cash rate unchanged at 1.75%. NZD-USD posted a 29-month low at 0.6664. EUR-USD, meanwhile, has been holding in a narrow range in the lower 1.1600s, below yesterday's five-session peak at 1.1628. USD-JPY printed a two-week low at 110.70 before recouping to the 111.0 area. EUR-JPY and other yen crosses have seen a similar down-and-up price action. A 2% rally in the main Chinese equity indexes helped lift risk appetite in broader markets, which was hinged partly on expectations for fiscal stimulus and partly on Beijing's announcement of a new government body to oversee the development of the nation's tech sector. This backdrop saw the Yen's safe haven premium unwind a little. The PBoC set the USD-CNY reference rate at 6.8317, near unchanged from yesterday's 6.8313 fix.