February 14, 2019 — 3 min read
The AUD opens at 0.7102 and the Kiwi opens at 0.6836.
In Australia, all eyes turn to RBA Assistant Governor Kent speaking at an XE hosted breakfast at 7:30 AEDT/9:30 NZT. Special focus will be on the questions after his speech. Please contact us for more details about Kent's speech.
The Kiwi managed to hold onto its gains after the RBNZ announcement on Wednesday. The market had priced near a 95% chance of a cut during 2019, so was caught very offside by the less than dovish comments. Market is now pricing in roughly a 50% chance of a cut, which still seems high, given how neutral and on hold the RBNZ is.
US Retail sales fell by the most since 2009, but the market is more focused on trade talks, which have officially started between the US and China. The rumour yesterday afternoon was the 1st March deadline of tariff increases could be extended another 60 days. You can expect many headlines like this over the coming weeks. It will truly be the trend in positive/ negative headlines that will be worth watching out for.
Out of the UK, Parliament defeated a vote reaffirming support for May's plan to seek changes to her Brexit deal. Three weeks ago, parliament had voted in favour of her trying to get changes out of the EU, but not anymore. British seem very happy to say what they don’t want, yet a little less inclined to say what they would do. The EU’s patience must be running pretty thin, and a rejection of any potential Article 50 extension would be a good way to force a resolution - one way or the other.
Chinese CPI data will be released today at 2:30 Auckland time, which can be a big driver of the AUD.
Global equity markets are flat, Dow -0.06%, S&P 500 +0.03%, FTSE +0.09%, DAX -0.69%, CAC -0.23%, Nikkei -0.02%, Shanghai -0.05%.
Gold prices are flat at 1,314 an ounce.
WTI Crude Oil prices are up slightly, trading at $54.45 a barrel.
Please contact us for more info about your international payments, or click here to register and save now.
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