The Australian dollar expands the Kiwi Downtrend, set for a weekly gain

The Australian dollar rallied over the weekend in positive territory on Friday, bolstered by rising risk sentiment and higher commodity prices, while it's New Zealand counterpart lagged behind the aggressive monetary easing stakes. ۔

 

The Australian dollar expands the Kiwi Downtrend, set for a weekly gain

Aussie, which is often traded’ as a proxy for the yuan, rose 14 pips to $ 0.7181 on Friday, data showing that China's services sector activity recovered to its fifth in September. Extends month.

The risk-averse OSCE is set’ for a quarter of a 1 percent increase this week, up from last week's 1.92 percent increase. Rising crude and iron ore prices pushed up the currency. [O / R]

 

The New Zealand dollar, currently 0.5% lower at 050 05050, following a BBC statement from the Reserve Bank of New Zealand (RBNZ) on Thursday, which is "actively working" on negative interest rates. doing".

The unit rose 0.4 percent to 6 0.6607 on Friday.

 

Commonwealth Bank analysts wrote in a note that "RBNZ officials have stated that they will be aggressive in providing economic stimulus and will appear to be working very soon rather than too soon." Joint Bank analysts wrote in a note.

 

He expects RBNZ to reduce the official cash rate by 75 basis points to -0.5% in April 2021.

 

The Reserve Bank of Australia (RBA), on the other hand, is widely expected to cut its cash rate from 0.25 percent to 0.1 percent at a policy meeting in November. Negative rates are said’ to be "extremely unlikely." [AU / INT]

 

The mobilization helped boost the Australian dollar's biggest weekly gain against the kiwi since mid-August by 0.83%.

On Friday, the RBA released its two-year Financial Stability Assessment (FSR) in which it said the country's financial system is strong enough to cope with the economic downturn even as business failures are likely to increase. ۔

 

Australian government bond futures were stable, the three-year bond agreement was changed’ to 99.815. The 10-year contract was for two tickets at 99.15.

New Zealand government bonds have risen slightly, reducing gains by about 3 basis points in the last part of the curve.


READ MORE 

Pelosi letter accuses Trump of 'delay, denial, distortion' over coronavirus


Post a Comment

0 Comments