The AUDUSD opened lower at 0.6997, the NZDUSD opened lower at 0.6617 this morning.
The AUD and NZD continued to track lower on the back of USD strength, after the US Federal Reserve Chairman Jerome Powell said yesterday that factors weighing on inflation might be “transitory” and that he saw no case for an interest rate move in either direction.
The Reserve Bank of Australia has a Cash Rate decision on Tuesday 7th May. It will be a close run decision on whether they lower interest rates from an already record low of 1.50% at this meeting, or leave it until after the election.
Adding to the cautiously bearish tone for the NZD is the real possibility the RBNZ will cut the Official Cash Rate by 0.25% at its meeting on Wednesday 8th May. The OCR currently stands at 1.75%.
The GBP fell after the Bank of England raised its growth forecasts but warned that Brexit uncertainty continues to cloud the outlook for monetary policy. The BoE voted to keep interest rates steady at 0.75%.
There are no data releases scheduled on the domestic calendar today. The highly influential and closely watched US non-farm payrolls employment figures hit the wires tonight, coupled with a series of US Fed members giving speeches.
Global equity markets were lower on the day - Dow -0.5%, S&P 500 -0.3%, FTSE -0.5%, DAX +0.0%, CAC -0.9%, Nikkei -0.2%, Shanghai +0.5%. Gold prices were dropped 0.1% at USD$1,271 an ounce as the USD rallied. WTI Crude Oil prices plunged 3.3% to US$61.63per barrel on ballooning US crude stockpiles and higher-than-expected Russian production.
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