Kiwi and Aussie Dollars Performing Well after US Interest Rate Unchanged - APAC Update

Xe Corporate APAC

January 31, 2019 3 min read

The AUD opened at 0.7266 and the NZD opened at 0.6912 this morning.

The Kiwi had a good day yesterday, or to be slightly more accurate, the USD had quite the selloff.

The Fed kept interest rates on hold yesterday and decided on a “Be patient, wait and see approach.” This was largely priced in though, and the market was expecting the Fed to be dovish, so the extent of the move was slightly surprising. As well as the initial US sell off, the fact that the US has slowed its rate hikes, (if not stopped them altogether) has led to a risk-on move, and the NZD and AUD are catching bids across the board.

Trade talk between the US and China continue, with a lot of talking and not too much beyond platitudes going on at the moment. The Tariff deadline of 1st of March is getting closer, however if that happens to get extended, we would not be too shocked. President Trump is rumoured to have a meeting scheduled with President Xi Jinping in late February.

UK Brexit Update

Speaking of extensions, at the moment the UK is looking increasingly destined for a Brexit extension. EU leaders are concerned PM May's team will end up with a no-deal Brexit at the end of June.

A fair bit of small data comes out today, before we have the Non-Farm Employment Change and Unemployment rate out of the States early tomorrow morning NZT. Do talk to your XE currency dealer, as having a market order in could be an excellent way of taking advantage of any overnight moves.

Global equity markets are generally positive, Dow -0.29%, S&P 500 +0.64%, FTSE +0.39%, DAX -0.08%, CAC +0.36%, Nikkei +1.06%, Shanghai +0.36%.
Gold prices are up 1.1% to $1,325 an ounce. WTI Crude Oil prices are off a touch, currently down 1.7% trading at $54.07 a barrel.

Mid-market rates
AUDUSD0.72661.0%NZDUSD0.69121.1%AUDEUR0.63480.7%NZDEUR0.60380.9%AUDGBP0.55410.6%NZDGBP0.52700.7%AUDJPY79.060.3%NZDJPY75.200.5%AUDNZD1.0515-0.1%NZDAUD0.95110.1%GBPAUD1.8047-0.6%NZDCAD0.90860.7% GBPNZD1.8978-0.7%
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