The AUDUSD opens little changed at 0.7090 (mid-rate), the NZDUSD opens little changed at 0.6808 (mid-rate) this morning.
The AUD/NZD received a temporary boost Friday afternoon after the Chinese Caixin/Markit Manufacturing Purchasing Managers’ Index rose more than forecast in February.
Australian home prices continued to slide in February, with data showing prices fell 0.7% nationally in February. Values are down 6.3% over the past 12 months. The Reserve Bank of Australia is concerned that further steep drops could undermine household wealth and spending, thus necessitate a cut in the cash rate.
NZ’s terms of trade, released Friday morning, fell 3.0% during Q4 2018, due primarily to lower dairy prices. The terms of trade measures the purchasing power of the nation’s exports abroad.
A slew of weaker-than-expected US economic data (consumer sentiment, personal spending & income, manufacturing PMI, manufacturing prices, among others) initially weighed on the USD Friday evening. However, the USD bounced back as global equity markets made strong gains and on optimism of a trade deal between China and the USA. The NZDUSD traded in a moderate range to end, more or less, where it started.
US President Donald Trump said Saturday evening (US time) that the US dollar is too strong and renewed criticism of the US Fed. He said the Fed’s tight monetary policy was contributing to the strong US$ and damaging the US’s global competitiveness.
Global equity markets were higher across the board on the day - Dow +0.4%, S&P 500 +0.7%, FTSE +0.5%, DAX +0.8%, CAC +0.5%, Nikkei +1.0%, Shanghai +1.8%. Gold prices are fell 1.2% to USD$1,296 an ounce, while WTI Crude Oil prices plunged 2.3% to US$55.80 per barrel.
The information, materials, accompanying literature and documentation available on our internet site is for information purposes only and is not intended as a solicitation for funds or a recommendation to trade. XE, its officers, employees and representatives accept no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.
While we take reasonable care to keep the information on the website accurate and up to date, there may be occasions when this is not possible. Case Studies and articles are not intended to predict future moves in exchange rates or constitute advice.
XE makes no representations, warranties, or assurances as to the accuracy or completeness of any information derived from third party sources. If you are in any doubt as to the suitability of any foreign exchange product that you are intending to purchase from XE, we recommend that you seek independent financial advice first.
For more information about XE, please click here: Regulatory Information