AUD Slipped Lower After RBA Minutes - APAC Update

. 3 min read

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.

Mid-market Rates

AUDUSD 0.7172 0.0% NZDUSD 0.6758 0.0%
AUDEUR 0.6353 0.1% NZDEUR 0.5985 0.1%
AUDGBP 0.5495 0.3% NZDGBP 0.5175 0.3%
AUDJPY 80.33 0.0% NZDJPY 75.68 -0.1%
AUDNZD 1.0612 0.1% NZDAUD 0.9425 0.0%
GBPAUD 1.8198 -0.3% NZDCAD 0.9027 -0.2%
      GBPNZD 1.9324 -0.3%

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