The AUD & NZD Clawing Back Up After The RBNZ Rate Cut - APAC Update

Xe Corporate APAC

August 8, 2019 2 min read

The AUD opened at 0.6806, and the NZD opened at 0.6480

The rebound continues, with the AUD and NZD clawing their ways back up. The wider market has seemed to get the feeling that with everyone cutting rates, that’s eventually going to be good for their economies, and therefore things are actually looking up. Sentiment is pretty fickle out there at the moment though, so it wouldn’t take much of a tweet for the doom and gloom (trade war escalation) to return.

In other news, you can get a 10 year mortgage in Denmark with a rate of -0.5%. Not a bad spot to be in, getting paid to borrow money. You get the feeling we will look back at this time with incredulity, but for now, everyone is seeing low rates going forward forever, and cannot imagine anything different.

We have the RBA Gov Lowe speaking at 1:30 today, and this could well be quite interesting. The market will expect him to be relatively dovish, so if he isn’t, we would expect some AUD strength on the back of it. Tonight at 8:30 pm we also have GDP and manufacturing data out of the UK.

Global equity markets have rebounded to slightly positive- Dow +1.2%, S&P 500 +1.67%, FTSE +1.21%, DAX +1.68%, CAC +2.31%, Nikkei +0.37%, Shanghai +0.93%.

Gold prices are flat at USD$1,516 an ounce. WTI Crude Oil prices bounced back, up 2.4% to US$52.87 per barrel.

Mid-market Rates

AUDUSD0.68060.6%NZDUSD0.64800.3%AUDEUR0.60810.8%NZDEUR0.57890.5%AUDGBP0.56050.6%NZDGBP0.53370.3%AUDJPY72.140.5%NZDJPY68.660.2%AUDNZD1.05030.3%NZDAUD0.9521-0.3%GBPAUD1.7840-0.6%NZDCAD0.8576-0.3% GBPNZD1.8738-0.3%
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