AUD & NZD Struggling To Move Up - APAC Update

Xe Corporate APAC

2019年4月25日 4 min read

The AUD opened at 0.7013, and the NZD opened at 0.6623 this morning.

Although the NZD is up over this time yesterday, it is still struggling to make up the lost ground since Australia’s poor CPI data on Wednesday. In case you missed it, Australia’s CPI, or inflation data came in at 0.0% q/q. This figure is closely watched by the Reserve Bank of Australia, and the market sold off heavily on the back of it. Although this was Australian specific data, as is often the case, the NZD fell in sympathy.

Closer to home, we have NZ’s trade balance out at 10:45, though this is probably not going to be too much of a market mover. Overnight, the United States will come out with the Advanced GDP figures, and a really strong report there would really solidify the US' fortunes in currency markets. NZ/AUS is “definitely cutting” its narrative, which is where the big moves are coming from.

Global Update

Going slightly further afield, something to keep a loose eye on, is the exchange rates of some emerging market currencies, notably the Turkish Lira and the Argentinean Peso. Since the start of the year, Turkey’s currency is off 12% against the USD, and Argentina’s is off just over 20%. The more the currencies drop, as both countries have to pay back loans in USD, the more underwater those loans become.

The respective central banks try to hike interest rates (Turkeys is 24%, Argentina’s is 68%). To support the currencies, they also sell down their foreign exchange reserves in an attempt to prop the local currencies back up. The problem is these reserves are finite, and when they run out, (or more to the point, the market thinks they will run out), you can get very large moves in rates, that can spill over into the wider market.

The flash crash on Jan 3rd, which affected all the major currencies, was precipitated initially by a move in the Turkish Lira, so it's worth keeping an eye on these pairs as a barometer for risk appetite.

Global equity markets are off a touch, - Dow -0.51%, S&P 500 -0.04%, FTSE -0.50%, DAX -0.25%, CAC -0.33%, Nikkei +0.48%, Shanghai -2.43%.

Gold prices are flat, trading at $1,279 an ounce.

WTI Crude Oil prices are off their recent highs, down 1.1% trading at $65.03 a barrel.

Mid-market Rates

AUDUSD0.70130.0%NZDUSD0.66230.5%AUDEUR0.62990.2%NZDEUR0.59500.8%AUDGBP0.54350.1%NZDGBP0.51370.6%AUDJPY78.31-0.4%NZDJPY73.960.1%AUDNZD1.0588-0.5%NZDAUD0.94450.6%GBPAUD1.8382-0.1%NZDCAD0.89310.5% GBPNZD1.9464-0.6%
Our *MarketWatch* page is live, please click here to access.

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