AUD

FX News

AUD/USD Transfer

The Australian Dollar (AUD) edged higher to a 4-week high of 0.6644 against the US Dollar (USD) in early week moves as risk sentiment improved. As the US Federal Reserve delivered their inflation report prices in the cross plummeted 120 points to 0.6500 levels with markets not happy about the uptick in inflation from 3.4% y/y at 3.5%. This is the third straight month CPI has increased above expectations. The Fed now will dial back interest rate cuts predicted earlier this year most likely from June to September. Inflation cooled at the end of 2023, but the Fed now seems less confident they will see levels around 2.0% targets in 2024 making for a “higher for longer” theme.

The current interbank midrate is: AUDUSD 0.6540

The interbank range this week has been: AUDUSD 0.6497- 0.6643

 

 

 

FX News

NZD/GBP Transfer

The New Zealand Dollar (NZD) extended moves from last week’s 0.4725 ( 2.1160) against the English Pound (GBP) posting a fresh 3 week high of 0.4770 (2.0860). The RBNZ kept interest rates on hold at 5.5% Wednesday pushing the kiwi lower to 0.4765 (2.0990). The central bank saying a restrictive policy was still required in efforts to drag down inflation back to a 1-3% target band. The December quarter CPI released at 4.7% but the RBNZ still has a way to go as they remain cautious in the face of stubborn inflation. Personally, we believe the bank should be cutting rates in the late May meeting.

The current interbank midrate is: NZDGBP 0.4778 GBPNZD 2.0929

The interbank range this week has been: NZDGBP 0.4754- 0.4794 GBPNZD 2.0856- 2.1033

 

 

 

 

 

FX News

NZD/USD Transfer

The New Zealand Dollar (NZD) shrugged off last week’s losses pushing back above 0.6000 posting a new high midweek of 0.6080 against the US Dollar (USD). This little run up wasn’t to last falling sharply as US inflation data came in, the cross retreating to 0.5965 levels. CPI came in higher than forecast of 3.4% y/y at 3.5%. This is the third straight month prices have increased above expectations. The Fed now will dial back interest rate cuts predicted earlier this year. Inflation cooled at the end of 2023, but the Fed now seems less confident they will see levels around 2.0% targets in 2024 making for a slower pace of cuts. Earlier the Reserve Bank of New Zealand (RBNZ) held interest rates unchanged at 5.5% as widely expected the 6th meeting in a row. The RBNZ said they were confident by leaving rates unchanged will return the inflation rate back to a 1-3% target band within 2024. We are a little surprised at the optimism showed by the RBNZ with growth weak and unemployment about to plunge. Overall direction in the cross is still to the downside.

The current interbank midrate is: NZDUSD 0.6001

The interbank range this week has been: NZDUSD 0.5964- 0.6082

 

 

 

 

 

FX News

AUD/GBP Transfer

With a lack of meaningful data publishing the British Pound (GBP), Australian Dollar (AUD) cross has been affected mostly over the week by US Data ques. The GBP drifted lower off the open extending last week’s move s to 0.5240 (1.9090) before reversing on hotter than expected US inflation data reaching 0.5185 (1.9290). US inflation released higher than expected pushing risk flow currencies into the red as the USD rallied. Next week’s UK CPI y/y read should throw up volatility with predictions of a drop to 3.1% y/y from the current 3.4%. The pair is still trading in a bull trend from the low at 0.5110 (1.9570) early March.

The current interbank midrate is: AUDGBP 0.5206 GBPAUD 1.9208

The interbank range this week has been: AUDGBP 0.5184- 0.5237 GBPAUD 1.9093- 1.9288

 

 

 

 

FX News

AUD/GBP Transfer

The Australian Dollar (AUD) punched through 0.5195 (1.9250) resistance in overnight trading vs the British Pound (GBP) on its way to post 0.5225 (1.9135) an 11-week high. A short week meant we have seen little meaningful data published in the cross. Last week’s Aussie CPI release saw a pause to inflationary pressures, the RBA not to happy with the result. While the move from the central bank is likely to be a cut this won’t happen for some time. Wage growth which is closely corelated with inflation which sits at 4.2% needs to start tracking higher. We need to see a break back below 0.5200 (1.9250) to confirm further downside in the pair.

The current interbank midrate is: AUDGBP 0.5206 GBPAUD 1.9208

The interbank range this week has been: AUDGBP 0.5161- 0.5226 GBPAUD 1.9133- 1.9375

 

 

 

FX News

NZD/GBP Transfer

The New Zealand Dollar (NZD) has been one of the strongest currencies over the week, rebounding off the weekly close at 0.4740 (2.1090) it has regained losses to reach 0.4770 (2.0960) against the British Pound (GBP). We have no news published to report on this week with all eyes on next week’s RBNZ meeting with no change predicted yet from 5.50%. Trend in the pair is still to the downside with price locked into a bear channel from the high at 0.4900 (2.0400) from late February. A move above prior resistance at 0.4780 (2.0910) could highlight a momentum shift for the kiwi.

The current interbank midrate is: NZDGBP 0.4764 GBPNZD 2.0990

The interbank range this week has been: NZDGBP 0.4730- 0.4775 GBPNZD 2.0942- 2.1138

 

 

 

 

 

FX News

AUD/USD Transfer

The Australian Dollar (AUD) rose from 0.6480 late Monday reversing 10 days of losses as the currency travelled to 0.6620 against the US Dollar (USD). The Aussie has been boosted from precious metal prices particularly Copper, along with rises in equities. However, in NY overnight trading we have seen the AUD fall back to 0.6580 into Friday. Meanwhile US Manufacturing jumped in March mildly supporting the big dollar which has triggered questions over a June Fed rate cut. Tonight, we have US Non-Farm Payroll and the unemployment rate which should cause volatility.

The current interbank midrate is: AUDUSD 0.6582

The interbank range this week has been: AUDUSD 0.6479- 0.6618

 

 

 

FX News

NZD/USD Transfer

The New Zealand Dollar (NZD) started the week off in familiar form falling further to 0.5940 off the bat against the US Dollar (USD) giving thought, it was going to be another long week of declines. However, the kiwi reversed on a dime pushing up back into the early 60’s, reaching 0.6045 in late morning US trading as risk currencies were back in favour. Surging commodities and a rebound in US equities have helped, the kiwi shrugging off concerns also of a downbeat RBNZ at next week’s central bank meeting. No change is predicted from 5.5% but we could see discussion of a potential cut at the May 22 meeting. Buyers of USD should consider 0.6000.

The current interbank midrate is: NZDUSD 0.6024

The interbank range this week has been: NZDUSD 0.5938- 0.6045

 

 

 

 

 

FX News

NZD/AUD Transfer

The New Zealand Dollar (NZD), Australian Dollar (AUD) has held around 0.9150 over the past couple of days, the kiwi looking generally sad as it has declined further over the week from 0.9191 (1.0880) , the 6th week straight. Precious metal prices have boosted the AUD this week, especially copper. Commodity buyers seem more concerned about inflation risk than growth which should keep commodity prices buoyant supporting the AUD. Next week’s RBNZ meeting comes into focus with no shift from 5.5% expected. An upbeat RBNZ governor could send the kiwi lower.

The current interbank midrate is: NZDAUD 0.9144 AUDNZD 1.0923

The interbank range this week has been: NZDAUD 0.9128- 0.9272 AUDNZD 1.0784- 1.0955