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Daily OANDA Forex Blog (Mar 11, 2010 at 06:11:45am) — by Dean Popplewell

Governor Bollard from the RBNZ stated last night that they do not anticipate ‘hiking interest rates until mid-year’. With the SNB this morning, the market will be focusing on their policy on FX intervention in EUR/CHF. Economic indications and inflation forecasts ‘did not require’ the sort of intervention that surprised and upset the markets last year. There is no doubt it, Hillenbrand ‘does not want to see a strong CHF’. However, expect rhetoric to indicate that ‘a relative improvement’ in the economy coupled with the strong CHF will help to contain inflation, the 'normalization process', and allow the SNB to move back to interest rate policy at some point. Chinese consumer inflation jumped to a 16-month high in Feb., coupled with other data displaying ‘broad-based strength’, is providing fresh arguments for policy tightening sooner rather than later by the PBOC. This will pressurize bourses, specifically in Australasia. Also this morning, I see that Greece...