The US stock markets came roaring back on Monday as traders started off February on a risk-on note after steep losses across all major indexes last week. The tech Nasdaq Index climbed a notable 2.55%, the best performance among the major US indexes. The small-cap stock Index Russell 2000 closed 2.53% higher, meanwhile the S&P 500 and Dow Jones Industrial Average climbed 1.61% and 0.76%, respectively.
Markets in the Asia Pacific appear poised to expand gains seen on Monday as optimism came back. Monday saw strong gains across equity markets despite some data showing softening Chinese manufacturing and services activity, according to data from China’s National Bureau of Statistics (NBS).
Kiwi traders will be keeping a close eye on the forthcoming Q4 employment report set for release on Wednesday morning, with a 0% change expected according to the economists. A worse-than-expected figure may boost bets for the RBNZ to expand monetary support.
The interest rate decision today by the Reserve Bank of Australia will draw close attention from traders, although it is widely expected that the RBA will hold its benchmark interest rate at 0.1%. No changes are anticipated regarding to the amount of quantitative easing or yield curve control. The decision follows hawkish comments surrounding fiscal stimulus from Prime Minister Scott Morrison, who indicated a fiscally disciplined approach going forward as to not burden future taxpayers.
The Kiwi pair is expected to range bound between 0.72 and 0.7150 until there is a substantial break over these price levels.
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