FX News

FX update: Covid Uncertainty Weighs Down Kiwi

NZD Holds Gains

Market Overview

Key Points:

• Worldwide coronavirus cases surpass 236.079 million with over 4.821 million official deaths.
• New Zealand has 342 active cases of coronavirus with 35 new cases yesterday. Meanwhile, the Australian State of New South Wales reported 496 new cases and 8 deaths yesterday with Victoria reporting 1466 new cases with 8 deaths
• US Non-Farm Payroll reports for September came in at 194,000 compared to 500,000 consensus
• Comments from ex-Prime Minister Tony Abbot on Taiwan disappoint the Chinese Foreign Ministry
• The NZ Truckometer – a GDP indicator, surged in September representing increased traffic volume and improving recent supply chain bottlenecks
• Crude Oil breaks into the 80’s as demand and shortages continue
• Offshore Bond holders of Evergrande have not received interest payments and may not meet the Monday (US time) deadline sparking risk off market trading conditions

Major Announcements last week:

  • RBA left their cash rate unchanged at 0.10% hinting at 2024 for the next interest rate hike
  • RBNZ hikes cash rate to 0.50%
  • US Non Farm Payroll dissapoints at 194,000 vs 500,000
  • Canadian Unemployment prints at 6.9% on forecast in September, down from August’s 7.1%
  • US Unemployment releases at 4.8% vs 5.1% predicted, lower than the previous months 5.2%
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