APAC Morning Update - 28/01/21

Xe Corporate APAC

January 28, 20212 min read

The NZD opens at 0.7182 this morning and the AUD opens at 0.7664.

The NZD and AUD drifted back below 0.7200 and 0.7700 overnight respectively, with more of a risk off sentiment to the market.

The Fed have come out this morning, and as expected, they have kept the interest rates near Zero, and made no change to its monthly bond purchases, pledging again to keep those economic pillars in place until there is a full rebound from the pandemic-triggered recession.

The pace of the recovery in economic activity and employment has moderated in recent months, and the FED sees the rollout of the vaccinations as key to getting the U.S out of this economic hole. Until then, the stimulus packages will be there to prop up the virus affected industries.
 
Australia:

Australian CPI data was better than expected, and an NAB business survey saw business conditions improving to their highest levels since 2018. This would suggest a strong move higher in Australia’s economic recovery going forward.

Europe:

Europe’s Vaccination pace is lagging behind the US and UK due to a disagreement with AstraZeneca over vaccine delays, and poor Economic data out of Germany did not help the mood in any way, with consumer confidence well down.
 
The next move:

We are waiting on the next breakout of this current range. The market attempted a break higher yesterday, only to be pushed back overnight. Keep working your orders, as the overnight moves are still large to both sides of the market.

Global equity markets are mostly lower: Dow 1.6%, S&P 500 -2.1%, FTSE -1.3%, DAX -1.8%, CAC -1.2%, Nikkei +0.3%, Shanghai +0.1%.

Gold prices are down -0.5%, currently trading at $1,841 an ounce. WTI Crude Oil prices are up 0.1% trading at $52.70 a barrel. 

AUDUSD 0.7664 -1.1%
AUDEUR 0.6334 -0.5%
AUDGBP 0.5601 -0.7%
AUDJPY 79.84 -0.6%
AUDNZD 1.0695 0.0%
GBPAUD 1.7854 0.7%

NZDUSD 0.7182 -0.8%
NZDEUR 0.5928 -0.4%
NZDGBP 0.5238 -0.6%
NZDJPY 74.73 -0.4%
NZDAUD 0.9347 0.0%
NZDCAD 0.9174 -0.2%
GBPNZD 1.9091 0.6%