APAC Morning Update - 05/02/21

Xe Corporate

February 5, 2021 2 min read

NZDUSD opens at 0.7155 and the AUDUSD opens at 0.7594

The NZD and AUD attempted another push higher last night, only to be driven back to the 0.7150 and 0.7600 respectively.

This was an unexpected USD resurgence with equities higher as well, and those who took bearish positions against the USD and bet on a multi-year downtrend, may be second guessing themselves.

There is also some optimism in the U.S that the economic outlook and the possibility that Friday's jobs report might be stronger than expected, and we also saw the number of Americans applying for benefits fall in the last week, which is seen as a positive.
Australian exports for goods and services rose in November and December, while their imports dropped slightly over the same time.

Europe and the UK:
In Europe retail sales grew more than expected in December, and given the sharp decline in November, this was a pleasant surprise for the Euro zone.

In the UK, The Bank of England left their interest rates unchanged, and said the negative interest rate policy needed time to work, and downgraded the countries growth expectations.

Looking ahead:
We seem to be stuck in a range at the moment, and are waiting on the next directional move. While offshore influences are still the main driver with the NZD, the RBNZ announcement at the end of the month will still be one to put in the calendar.

Global equity markets are mixed: Dow +0.84%, S&P 500 +0.81%, FTSE -0.06%, DAX +0.91%, CAC +0.82%, Nikkei -1.06%, Shanghai -0.44%.

Gold prices are down -2.4%, currently trading at $1,790 an ounce. WTI Crude Oil prices are
also up 0.8% trading at $55.80 a barrel. 

AUDUSD 0.7594 -0.4%
AUDEUR 0.6342 0.1%
AUDGBP 0.5559 -0.5%
AUDJPY 80.08 0.0%
AUDNZD 1.0617 0.2%
GBPAUD 1.7985 0.5%

NZDUSD 0.7155 -0.6%
NZDEUR 0.5976 -0.1%
NZDGBP 0.5234 -0.7%
NZDJPY 75.41 -0.2%
NZDAUD 0.9417 -0.2%
NZDCAD 0.9176 -0.2%
GBPNZD 1.91 0.7%