The USD rose overnight, nudging the AUDUSD / NZDUSD down - APAC Update

Xe Corporate APAC

March 28, 2019 3 min read

The AUDUSD opens lower at 0.7075 this morning. The NZDUSD also opens lower at 0.6782.

On the domestic front, yesterday’s ANZ business confidence numbers continued their slide in March– adding to fears the NZ economy is losing momentum and reinforcing the RBNZ’s just announced easing bias for interest rates.

Is more ‘shock & Orr’ in store for the markets today when RBNZ Governor Adrian Orr gives a speech on the future of NZ’s monetary policy? The just adopted rate cut bias from the RBNZ had the desired effect of lowering interest rates and the NZD. Will Orr now deliver a one-two punch during his speech at 9am?

US Update

The USD rose overnight, nudging the AUDUSD and NZDUSD down, despite data showing the USD economy slowed more than previously thought in Q4.

US Q4 GDP was lowered to 2.2%, from 2.6%, and keeps growth in 2018 below the Trump administration’s 3% annual target. This is helping to maintain an inverted US yield curve(short term rates being higher than longer term), which could indicate that a recession is likely within the next 2 years.

US-China trade talks continue with US officials arriving in China Thursday for a fresh round of discussions, which will be followed by a round in Washington next week. US officials said China has made proposals on a range of issues that go further than before, including on forced technology transfer. The Trump administration stated they are prepared to keep negotiating as long as it takes to ensure an acceptable deal is reached.

UK Update

Elsewhere, the Brexit circus continues with no end, or agreement, in sight. The GBPUSD sank to a 1-week low as UK Prime Minister May’s prospect of getting a deal through, and indeed for surviving as PM, sank further after the British parliament failed to agree on a way forward.

Global equity markets were mixed on the day - Dow +0.3%, S&P 500 +0.3%, FTSE +0.6%, DAX +0.1%, CAC -0.1%, Nikkei -1.6%, Shanghai -0.9%.

Gold prices plunged 1.5% to USD$1,291 an ounce as the USD rallied. WTI Crude Oil prices dipped 0.2% to US$59.23per barrel.

Mid-market rates

AUDUSD0.7075-0.2%NZDUSD0.6782-0.3%AUDEUR0.63040.1%NZDEUR0.60430.0%AUDGBP0.5421-1.3%NZDGBP0.51961.3%AUDJPY78.24-0.1%NZDJPY75.01-0.1%AUDNZD1.04250.0%NZDAUD0.9587-0.1%GBPAUD1.84471.3%NZDCAD0.91180.1% GBPNZD1.9246-1.3%

Get in touch with us for more information or pricing.

Would you like daily international currency market news and insights delivered to directly to your inbox? Sign up to our country-specific updates below, and please browse the rest of our blog for more insights from XE offices around the globe.

Australia Morning Update  |  New Zealand Morning Update

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

APACBusiness MattersCurrency Market InfluencesMoney Transfer