FX News

FX News

AUD/GBP Transfer

The RBA held interest rates unchanged Tuesday at 4.35% as we expected emphasising the need to remain focused on upside risks to inflation. The Australian Dollar (AUD) rising to 0.5055 (1.9780) before returning to post 0.5112 (1.9560) as US Election voting kicked in. The first rate cut for the RBA may not come until the February meeting in 2025. The RBA may wait until the 4th quarter CPI release on the 29th of January 2025 before making a decision on this. The Bank of England are widely expected to cut 25 points in the morning to 4.75% however they may signal a shallower easing cycle if new budget forecasting comes into play.

 

Current Level: 0.5100
Support: 0.5040
Resistance: 0.5170
Last week’s range: 0.5029- 0.5109

FX News

EURO/NZD Transfer

Price action in the Euro (EUR), New Zealand Dollar (NZD) cross has been dictated by US Elections results with the Euro selling off to 0.5565 (1.7970) from 0.5485 (1.8230) over the past couple of days. Markets clearly expecting a Trump presidency. NZ unemployment rose to 4.8% from 4.6% in the second quarter, employers shedding workers until cost pressures ease. This “if anything” confirming further interest rate cuts are needed with prospects now the RBNZ may cut 75 points later this month instead of 50 points.

 

Current Level: 1.8066
Resistance: 1.8200
Support: 1.8000
Last Weeks Range: 1.7833 – 1.8071

FX News

NZD/EURO Transfer

Price action in the Euro (EUR), New Zealand Dollar (NZD) cross has been dictated by US Elections results with the Euro selling off to 0.5565 (1.7970) from 0.5485 (1.8230) over the past couple of days. Markets clearly expecting a Trump presidency. NZ unemployment rose to 4.8% from 4.6% in the second quarter, employers shedding workers until cost pressures ease. This “if anything” confirming further interest rate cuts are needed with prospects now the RBNZ may cut 75 points later this month instead of 50 points.

 

Current Level: 0.5535
Support: 0.5470
Resistance: 0.5555
Last week’s range: 0.5472- 0.5552

FX News

GBP/NZD Transfer

It’s been far to “risky” a week with all that’s been going on for the New Zealand Dollar (NZD) to gain any real momentum. The kiwi slipping lower from 2.1590 to 2.1770 amid US election action over the past day or so against the British Pound (GBP). NZ unemployment ticked up from 4.6% to 4.8% in the second quarter but lower than forecast of 5.00%, annual wage inflation slowing for the 6th straight month. Unemployment is expected to continue rising giving support to much further interest rate cuts by the RBNZ. Attention now lies with Friday mornings Bank of England (BoE) cash rate with a 25-point cut to 4.75% predicted.

 

Current Level: 2.1677
Resistance: 2.1900
Support: 2.1560
Last Weeks Range: 2.1516- 2.1843

FX News

NZD/GBP Transfer

It’s been far to “risky” a week with all that’s been going on for the New Zealand Dollar (NZD) to gain any real momentum. The kiwi slipping lower from 2.1590 to 2.1770 amid US election action over the past day or so against the British Pound (GBP). NZ unemployment ticked up from 4.6% to 4.8% in the second quarter but lower than forecast of 5.00%, annual wage inflation slowing for the 6th straight month. Unemployment is expected to continue rising giving support to much further interest rate cuts by the RBNZ. Attention now lies with Friday mornings Bank of England (BoE) cash rate with a 25-point cut to 4.75% predicted.

 

Current Level: 0.4613
Resistance: 0.4640
Support: 0.4565
Last Weeks Range: 0.4578- 0.4650

FX News

AUD/NZD Transfer

With all the currency heat going on amid US elections we have seen the Australian Dollar (AUD), New Zealand Dollar (NZD) cross trade within recent ranges. The Aussie getting a little more bids this week extending off last week’s moves from 0.9090 (1.1000) to 0.9040 (1.1065) this morning. Early week the RBA held their interest rate at 4.35% saying upside risk to inflation remains. Last week’s inflation drop from 3.8% to 2.8% y/y is still too high. Unemployment in NZ rose from 4.6% to 4.8% for the second quarter slightly less than the 5.00% forecast. Third quarter employment participation numbers are predicted to fall further putting stress on high interest rates. Support at 0.9000 (1.1110) may not hold till xmas.

 

Current Level: 1.055
Resistance: 1.1150
Support: 1.0980
Last Weeks Range: 1.0963 – 1.1054

FX News

NZD/AUD Transfer

With all the currency heat going on amid US elections we have seen the Australian Dollar (AUD), New Zealand Dollar (NZD) cross trade within recent ranges. The Aussie getting a little more bids this week extending off last week’s moves from 0.9090 (1.1000) to 0.9040 (1.1065) this morning. Early week the RBA held their interest rate at 4.35% saying upside risk to inflation remains. Last week’s inflation drop from 3.8% to 2.8% y/y is still too high. Unemployment in NZ rose from 4.6% to 4.8% for the second quarter slightly less than the 5.00% forecast. Third quarter employment participation numbers are predicted to fall further putting stress on high interest rates. Support at 0.9000 (1.1110) may not hold till xmas.

 

Current Level: 0.9040
Resistance: 0.9110
Support: 0.8970
Last Weeks Range: 0.9046 – 0.9121

 

FX News

NZD/USD Transfer

The New Zealand Dollar (NZD) slumped off 0.6000 numbers to post 0.5910 against the surging US Dollar (USD) overnight as US elections came in. The greenback made big moves across the main board as news of a new Trump led government became reality. The Republican party has gained enough support in both the US Senate and US Congress, this making it easier for the new president to implement “Dollar” positive economic plans such as lower taxes and tariffs. His policies will most likely lead to increased spending impacting inflation. Tomorrow morning’s Fed meeting markets have priced in a 25-point cut to 4.75% but past this point cuts look shady. Long term support in the cross still sits at 0.5850 the lows from late July and mid-April, we pick a retest of this zone in the coming weeks.

Current Level: 0.5942
Support: 0.5850
Resistance: 0.6200
Last week’s range: 1.6300 – 1.6598

 

FX News

FX Update: Election results dominate moves

Market Overview

 

  • Trump wins presidential race for the White House after being voted out 4 years ago in a remarkable comeback.
  • US Equity indices close at massive highs – the DOW going 3.4%.
  • The US Dollar strengthens across the board as Election results come in. The US Dollar Index a trade weighted average surged to a 4-month high as the former president Trump scored the necessary votes to become the next President again.
  • Trump’s victory fuels speculation for new policies such as tax cuts and tariffs which could ultimately raise inflation again and put the Fed back on a dovish policy stance. Historically in a republican government the US Dollar (USD) has benefited more, especially in recent terms. The Fed is widely expected however to cut interest rates tomorrow morning a quarter of a percent to 4.75%.
  • Precious metals and Gold have been sold off in the wake of the US Election results dropping 2.6% into the NY close this morning. Meanwhile Oil has dropped 2.5%. One of Trumps plans is to open up more drilling.
  • New Zealand Unemployment jumps to 4.8% in June up from first quarter’s 4.6
  • The United States Dollar (USD) is the best performing currency this week with the Japanese Yen (JPY) dragging the chain again in last spot.
FX News

Calendar of Economic Releases

Monday November 4th
All Day JPY Bank Holiday

Tuesday November 5th
4:30pm AUD Cash Rate Forecast | 4.35% Previous | 4.35%
4:30pm AUD RBA Monetary Policy Statement
4:30pm AUD RBA Rate Statement
5:30pm AUD RBA Press Conference

Wednesday November 6th
Tentative GBP Monetary Policy Report Hearings
4:00am USD ISM Services PMI Forecast | 53.4 Previous | 54.9
All Day USD Presidential Election
All Day USD Congressional Elections
10:45am NZD Employment Change q/q Forecast | -0.40% Previous | 0.40%
10:45am NZD Unemployment Rate Forecast | 5.00% Previous | 4.60%
10:30pm GBP Construction PMI Forecast | 55.3 Previous | 57.2 Read more