Rate-Cut Prediction After Strong AUS Employment Data Weighs Down the AUD - APAC Update

Xe Corporate APAC

February 21, 2019 3 min read

The AUD opened down today at 0.7078, and the NZD opened down at 0.6802.

The most compelling headlines were out of Australia yesterday afternoon, with the Kiwi standing mostly in the shadows. First up, Australia's employment data came in strong at a net 39,000 new jobs added. This news lifted the AUD by half a percent, and market conditions were looking good.

Unfortunately, this positive move quickly reversed back to where it started. A report from Westpac Australia predicts two rate cuts by the end of the year. Following closely on this report, news came out of China that one of their ports, the Dalian port, had banned coal imports from Australia. This ban is indefinite for now, with concerns being it will only escalate trade tensions  further.

US data

A string of reasonably poor US manufacturing data last night helped stem some of the fall of the US dollar. The announcement was not Tier 1 data, but it doesn't help the overall US economic growth picture.

Brexit update

Brexit talks continue in  Brussels, with conflicting headlines as to their success. The UK PM’s spokesperson said May and EU President Jean-Claude Juncker "are constructive" and "have been making progress.” Juncker was sporting a plaster during the discussions, though Juncker said May was not the cause of his minor injury.

The RBA’s Lowe has a 3 hour speech from 11:30 this morning, with a lot of Fed speakers as well overnight. Any market moves out of that lot though would be relatively surprising.

Global equity markets are inching higher, - Dow -0.32%, S&P 500 -0.26%, FTSE -0.85%, DAX +0.19%, CAC +0.00%, Nikkei +0.15%, Shanghai -0.34%.Gold prices are off, down -1.2% at $1,328 an ounce. WTI Crude Oil prices are following the trend, also down -0.8% trading at $56.85 a barrel.

Mid-market rates

AUDUSD0.7078-1.3%NZDUSD0.6802-1.1%AUDEUR0.6248-1.1%NZDEUR0.6004-0.7%AUDGBP0.5429-1.2%NZDGBP0.5217-0.8%AUDJPY78.43-1.3%NZDJPY75.36-0.9%AUDNZD1.0405-0.4%NZDAUD0.96070.3%GBPAUD1.84181.2%NZDCAD0.8984-0.7% GBPNZD1.91670.8%
Please contact us for more info about your international payments, or click here to register and save now.

Please Note:
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