currency exchange

FX News

NZD/GBP Transfer

The New Zealand Dollar (NZD) has extended moves higher against the British Pound (GBP) Monday reaching 0.4900 (2.0400) before drifting back to 0.4885 (2.0470) this morning. UK house prices rose further than expected while UK manufacturing also came in hot, both strengthening the Pound for short periods. Governor Bailey speaks Thursday. On the chart the kiwi eyes 0.4930 (2.0285) the high of early October, the kiwi should be well supported on dips in the run up.

 

The current interbank midrate is: NZDGBP 0.4877 GBPNZD 2.0504

The interbank range this week has been: NZDGBP 0.4874- 0.4904 GBPNZD 2.0388- 2.0515

FX News

AUD/USD Transfer

The Australian Dollar (AUD) rallied late Friday against the US Dollar (USD) reaching 0.6670 areas as risk markets continued to dominate moves based on impressive equities and metal prices. The surge to early August highs hasn’t lasted however with US Manufacturing contracting in November coming in at 46.7% worse than market expectations of 47.6% bringing back the AUD to Tuesday. Today’s RBA cash rate will remain unchanged at 4.35% but may signal ongoing attention to stubborn inflation, PMI and Retail Sales data. 3rd quarter data and inflation will be key to February’s policy meeting. Non-Farm Payroll prints Friday and is expected to reflect a rise to unemployment numbers.

The current interbank midrate is: AUDUSD 0.6620

The interbank range this week has been: AUDUSD 0.6603- 0.6690

FX News

AUD/GBP Transfer

The Australian Dollar (AUD), British Pound (GBP) sits deep within recent ranges into Tuesday, falling back to 0.5240 (1.9080) off the open as markets await today’s RBA cash rate release. The Reserve Bank of Australia will keep their cash rate on hold later today at 4.35% with Governor Bullock remaining on alert about lingering inflation. She said recently these problems are localised not global. With recent PMI data showing a slowdown in the economy this should be reflected in the 3rd quarter data and 4th quarter CPI. We expect the Aussie to drift lower over the week.

The current interbank midrate is: AUDGBP 0.5240 GBPAUD 1.9083

The interbank range this week has been: AUDGBP 0.5238- 0.5271 GBPAUD 1.8971- 1.9090

FX News

NZD/USD Transfer

The New Zealand Dollar (NZD) reached the lofty heights of 0.6210 to close out the week against the US Dollar (USD) the highest it’s been since late July. It’s been an incredible run through 0.6000 recently in a perfect storm with massive flows back into the kiwi. A hawkish RBNZ last week helped when the central bank signalled they would keep interest rates higher for a longer period. ANZ consumer confidence rose 3.8 points in November to 91.9- the highest level since January 2022. We have no local data publishing on this week’s docket, just US Non-Farm Payroll Friday, expected to come in poor with unemployment rising from 3.9%. The kiwi could be a little overbought- we see the NZD drifting lower over the coming days.

The current interbank midrate is: NZDUSD 0.6161

The interbank range this week has been: NZDUSD 0.6149- 0.6221

FX News

NZD/AUD Transfer

The Australian Dollar (AUD) retreated Monday off 1.0760 (0.9295) to 1.0730 (0.9320) early Tuesday as we head into RBA week. The kiwi has been doing well of late post last week’s RBNZ hawkish hold. We don’t expect a hike from the RBA today from 4.35% after the central bank raised it in November. The Aussie could come under selling pressure this week depending on the market mood. A break past 0.9340 (1.0710) and we could see further upside in the NZD, possibly a retest of the long-term mark at 0.9400.

The current interbank midrate is: NZDAUD 0.9307 AUDNZD 1.0736

The interbank range this week has been: NZDAUD 0.9289- 0.9335 AUDNZD 1.0712- 1.0765

FX News

EURO/AUD Transfer

The AUD remains in inflationary conditions as does the GBP, but the interest rate differential favours the Pound. The UK has experienced amongst the highest inflations levels in Europe and is well advanced in the rising interest rate environment. Although the differential favours the GBP, they may be reaching the end of the cycle and the Bank of England may choose to maintain at high levels, rather than raise rates again. The RBA has indicated that they may support further rate rises and this may be a short-term support for the AUD.

Current Level: 1.6440
Resistance: 1.6800
Support: 1.6300
Last Weeks Range: 1.6453 – 1.6665

FX News

AUD/EURO Transfer

Recessionary conditions across Europe are having the desired effect on inflation and the ECB may now look to halt interest rate rises. The ECB and Bank of England are clearly at the end of their monetary policy tightening cycle, while Australian inflationary conditions persist. These monetary and economic conditions may work in the favour of the AUD, for the short-term, but long-term pain is on the horizon. Fiscal largesse remains an issue across the West, with deficit and debt a root cause of inflation.

Current Level: 0.6047
Resistance: 0.6080
Support: 0.6020
Last Weeks Range: 0.6021 – 0.6077

FX News

GBP/AUD Transfer

The AUD remains in inflationary conditions as does the GBP, but the interest rate differential favours the Pound. The UK has experienced amongst the highest inflations levels in Europe and is well advanced in the rising interest rate environment. Although the differential favours the GBP, they may be reaching the end of the cycle and the Bank of England may choose to maintain at high levels, rather than raise rates again. The RBA has indicated that they may support further rate rises and this may be a short-term support for the AUD.

Current Level: 1.9080
Resistance: 1.9300
Support: 1.9000
Last Weeks Range: 1.9030 – 1.9185

FX News

AUD/GBP Transfer

The AUD remains in inflationary conditions as does the GBP, but the interest rate differential favours the Pound. The UK has experienced amongst the highest inflations levels in Europe and is well advanced in the rising interest rate environment. Although the differential favours the GBP, they may be reaching the end of the cycle and the Bank of England may choose to maintain at high levels, rather than raise rates again. The RBA has indicated that they may support further rate rises and this may be a short-term support for the AUD.

Current Level: 0.5210
Support: 0.5190
Resistance: 0.5280
Last week’s range: 0.5203 – 0.5242

FX News

AUD/USD Transfer

The RBA raised rates under the camouflage of the Melbourne Cup, at their last meeting. Inflationary conditions remain a serious threat to the Australian economy and monetary policy continues to threaten. The interest rate differentials may offer some short-term benefits for the AUD, as the Fed looks to have reached ‘peak inflation’ and may look to cut rates, while the RBA has a bias to raise rates or at least extend the ‘higher for longer’ mantra.

Current Level: 0.6590
Support: 0.6555
Resistance: 0.6625
Last week’s range: 0.656 – 0.6630