The AUDUSD opens higher at 0.7169 this morning, and the NZDUSD opens higher at 0.6763 this morning.
Yesterday afternoon, RBA deputy governor Guy Debelle delivered a speech on the state of the Australian economy. Whilst he acknowledged some challenges, he still expected decent growth in the Australian economy. Given this, it is unlikely we will see a rate cut from the RBA near-term. Prime Minister Scott Morrison is expected to announce the Federal election will be held on Saturday 18th May.
The NZDAUD has traded to an 11-week low of 0.9430 as the market further prices in expected rate cut from the RBNZ, while the RBA sits pat for now at least.
The USD declined, pushing the NZDUSD higher, after the US Federal Reserve meeting minutes confirmed the central bank’s thinking was now tilted more towards cutting interest rates rather raising them as they had been gradually doing the past 2 years.
The Fed saw the US economy weathering a global economic slowdown, but they made it clear they saw no recession for the United States in the next few years.US CPI (consumer price inflation) figures were released prior to the Fed minutes. The headline CPI increased by the most in 14 months in March, although the underlying inflation trend remained subdued amid slowing US and global economic growth. These figures help to reinforce the Fed’s current stance on interest rates.
The European Central Bank (ECB) maintained its ultra-easy monetary policy stance overnight and was giving recent stimulus measures time to work their way into the economy in an attempt to counter spreading global economic blues.
The GBP strengthened overnight, but remained within recent ranges. The EU is expected to grant the UK another Brexit delay but may force them to accept a longer extension than currently proposed, and with some strings attached.
Global equity markets were mixed on the day - Dow -0.0%, S&P 500 +0.3%, FTSE -0.1%, DAX +0.5%, CAC +0.3%, Nikkei -0.5%, Shanghai +0.1%.Gold prices were flat at USD$1,298 an ounce. WTI Crude Oil prices rose 0.8% to US$64.58 per 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