Powell Said The Fed Will Remain “Patient” On Further Interest Rate Hikes - APAC Update

Xe Corporate APAC

2019年2月27日 — 3 min read

The AUDUSD opens lower at 0.7138, and the NZD USD opens lower at 0.6838 this morning.

US Update

The USD gained strength, pulling the NZDUSD lower, on safe-haven bids after US Trade Representative Robert Lighthizer said the country’s issues with China were “too serious” to be resolved by promises ofmore purchases of US goods by Beijing. Lighthizer said any deal must include a way to ensure commitments are met– certainly doesn’t look like any deal is imminent.

US Fed Chairman Jerome Powell continued his two-day testimony before the US Congress. He said the Fed will remain “patient” in deciding on further interest rate hikes. The US money markets have priced-out any chance of a rate hike this year and have priced-in an 80% probability of a rate cut by early 2020. Under such a scenario, the medium-term outlook for the USD is negative.

Global Update

The GBP rallied to its highest level in 7-months on expectations that a ‘no-deal’ Brexit was less likely and that the UK’s departure from the EU would be delayed.

The second US-North Korea nuclear summit commenced in Vietnam amid heightened tensions between nuclear powers India and Pakistan.

Oil prices surged higher after an unexpected plunge in US crude inventories and as Saudi Arabia appeared unfazed by pressure from President Trump to prevent oil prices from increasing.

Upcoming Data

ANZ Business Confidence figures hit the tapes at 1:00pm today. They have been consistently weak the past 12 months.

Global equity markets were mixed on the day - Dow -0.2%, S&P 500 -0.1%, FTSE -0.6%, DAX -0.5%, CAC -0.3%, Nikkei +0.5%, Shanghai +0.4%.

Gold prices slipped 0.5% to USD $1,318 an ounce, while WTI Crude Oil prices jumped 1.7% to US$57.27 per barrel.

Mid-market Rates

AUDUSD0.7138-0.5%NZDUSD0.6838-0.7%AUDEUR0.6278-0.5%NZDEUR0.6013-0.6%AUDGBP0.5366-1.0%NZDGBP0.5139-1.1%AUDJPY79.26-0.3%NZDJPY75.91-0.4%AUDNZD1.04400.2%NZDAUD0.9581-0.1%GBPAUD1.86361.0%NZDCAD0.8993-0.9% GBPNZD1.94591.1%
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

APAC Currency Market Influences Foreign Exchange Money Transfer