A look at the key events ahead in New Zealand

A look at the key events ahead in New Zealand

A security guard stands in the main entrance of the Reserve BankReserve Bank of New Zealand located in central Wellington, New Zealand.

A look at the day ahead from Tom Arnold.

The decision of New Zealand on Wednesday to take up the mortgage rate hike is a reminder of the challenges major central banks face in their bid to move away from emergency stimulus while coronavirus remains a threat to growth.

Reserve Bank of New Zealand policymakers quickly shifted gears after the country was put on snap COVID 19 lockdown over a handful of new cases.

A hike is expected before the year-end, lending some support to a kiwi dollar that has taken a beating over the last two sessions.

Lastly, investors will be hoping to get new info about timing and rate of reducing the U.S. Federal Reserve's asset purchase levels.

They'll be poring over the minutes due later on July 27 - 28 when officials declared the recovery on course despite the rise of the Delta variant of the coronavirus.

The readout is likely to be key for the short-term outlook for the greenback and Treasury yields, especially if it confirms more policymakers are leaning toward curtailing bond purchases by the end of the year.

Since then, of course, economic data has muddied the waters.

Strong labour market numbers have spurred a number of policymakers to ramp up talk of an earlier-than expected start to tapering.

Still, retail sales fell more than expected in July, data showed on Tuesday, suggesting a slowdown in economic growth early in the third quarter.

Fed Chair Jerome Powell said on Tuesday it remained unclear whether the acute outbreak of the coronavirus variant will have a noticeable impact on the economy.

As markets go into their third week, major developments should provide more direction and direction to the market:

- Danish brewer Carlsberg raised its full-year earnings guidance on Wednesday after reporting the second quarter of service above expectations.