The AUDUSD opened at 0.7172 (mid-rate), and the NZDUSD opened at 0.6758 (mid-rate) this morning.
An increase in risk appetite has seen the AUD retrace yesterday’s late morning fall following the release of this month’s RBA minutes.
The AUD slipped lower during our trading day after RBA minutes showed policy makers would consider cutting rates, if inflation stays low and unemployment trended upwards. “Members agreed that the likelihood of a scenario where the cash rate would need to be increased in the near-term was low.”
Investors will look to this morning’s first-quarter inflation report, which will be a crucial piece of the RBNZ interest rate jigsaw puzzle, before adding to their positions. The data is due for release at 10:45 local time with market consensus betting on a 0.3% increase on the quarter, which should produce a 1.7% annualised pace of price growth.
Earlier this morning, the latest Global Trade Auction resulted in the 10th consecutive rise in the overall index, which is now up by 27.85 since 20th November, 2018. This morning’s 0.5% increase was largely due to another surge in butter prices.
US and Europe Update
The US Federal Reserve industrial production report for the month of March showed production unexpectedly edged lower, down 0.1% following a 0.1% uptick in February. Economists had forecast production to increase by 0.2%.
The EUR slipped lower overnight, following a Reuters report in which ECB policy makers expressed concerns about the accuracy of their growth projections in the second half of 2019. The report said policy makers may need to downwardly revise both their growth and inflation projections, citing the current economic slowdown in China and ongoing trade tensions.
Global equity markets have turned positive, - Dow +0.28%, S&P 500 +0.10%, FTSE +0.44%, DAX +0.67%, CAC +0.36%, Nikkei +0.24%, Shanghai +2.39%.
Gold prices are down 0.9% trading at $1,276 an ounce.
WTI Crude Oil prices have retraced yesterday’s fall and are currently up 1.1%, trading at $64.24 a barrel.
Our MarketWatch page is live, please click here to access.
Get in touch with us for more information or pricing.
Would you like daily international currency market news and insights delivered to directly to your inbox? Sign up to our country-specific updates below, and please browse the rest of our blog for more insights from XE offices around the globe.
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