February 17, 2021 — 2 min read
NZDUSD opens at 0.7212 whilst the AUDUSD opens at 0.7763
The NZD and the AUD continue to sit in their ranges after attempting to push higher again in the Asian session.
This has been a common trend over the COVID months, and buyers of NZD and AUD have attempted to push the currency higher towards 0.7300 and 0.7800 respectively, with no catalyst emerging to suggest a large selloff as yet.
Adding to that, we are still seeing strength in the commodity market, which is helping to support the AUD, and monetary policy from the RBA will remain dovish for the foreseeable future.
The RBNZ meeting on the 24 of February could be the event that potentially breaks the deadlock. With many major challenges ahead in the COVID world, and a loose monetary policy still required, the RBNZ are likely to be more dovish in their monetary policy to accommodate for the current economic environment.
US Treasury yields and Dairy Auctions :
US treasury yields are running higher, which supported the USD overnight, and commodity prices also pushed higher, with the global dairy auctions attracting higher prices, but surprisingly, the NZD did not follow.
US equities opened stronger after the US long weekend, and saw fresh highs, before selling pressure came in overnight. The market is now focused on the upcoming US Fiscal stimulus, rising debt issuance, and the possible inflationary impact of over-stimulating the economy.
AUDUSD 0.7763 -0.3%
AUDEUR 0.6409 -0.1%
AUDGBP 0.5581 -0.3%
AUDJPY 82.20 0.3%
AUDNZD 1.0763 0.0%
GBPAUD 1.7917 0.3%
NZDUSD 0.7212 -0.2%
NZDEUR 0.5952 -0.2%
NZDGBP 0.5184 -0.3%
NZDJPY 76.36 0.3%
NZDAUD 0.9290 0.0%
NZDCAD 0.9149 0.1%
GBPNZD 1.9286 0.3%