Yesterday's Local Data Helps the AUD and NZD Recover Some Ground

. 2 min read

The AUDUSD opens at 0.6829 (mid-rate) and the NZDUSD opens at 0.6426 (mid-rate) this morning.

The Australian dollar has managed to claw back its losses following yesterday’s dovish RBA monetary policy minutes, and opens this morning marginally up against the majority of its rivals.

The AUD slipped lower yesterday morning after the RBA minutes showed the Central bank had debated whether they should cut rates at their November meeting. Although the Board ultimately decided against the move they reaffirmed that they are prepared to ease policy further if needed. The market is currently pricing in a 45% chance the RBA will cut again before March 2020.

Across the Tasman, another rise in global dairy prices has helped lift the New Zealand dollar back above 64 US cents.

This morning's GDT Price Index increased by 1.7% with an average selling price of $ 3,481 per tonne. It was the fifth consecutive rise for the index and follows a 3.7% spike a fortnight ago. The overall result was assisted by healthy increases in both skimmed milk powder and whole milk powder prices which increased by 3.3% and 2.2%  respectively.

Overnight, the US Commerce Department reported October’s housing starts rose 3.8% following on from the sharp 7.9% fall in September. The result was still shy of the forecast 5.1% increase.

The British pound has given back some of its recent gains as investors trim their long positions ahead of this morning’s televised head-to-head debate between Prime Minister Boris Johnson and opposition leader Jeremy Corbyn. YouGov are expected to release an updated post-debate poll later today and any fall in the Tories lead should lead to further weakening of the pound.

With little in the way of economic data during our trading day investors are likely to wait for tomorrow morning’s FOMC minutes before adding to their positions.

Global equity markets remain mixed - Dow -0.31%, S&P 500 -0.10%, FTSE +0.22%, DAX +0.11%, CAC -0.35%, Nikkei -0.63%, Shanghai +0.85%

Gold prices are little changed trading at $1,474 an ounce. WTI Crude Oil prices continue to fall, down 2.0% to $55.75 a barrel.

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Australia Morning Update | New Zealand Morning Update