The New Zealand Dollar (NZD) had its best daily rise against the Australian Dollar (AUD) since May, Thursday rising off 0.8780 to 0.8860. Australian unemployment numbers came in below expectation taking down the AUD and improving the NZD. The report confirming softer labour demand in the jobs market with 14.9k of jobs losses in September. Bullock said that a pickup in household spending and stronger reading in some inflation components could reinforce speculation of the RBA to resume their easing policy in the coming months. This would certainly raise demand in NZD buying and improve the NZD/AUD. Next week’s economic data comes in the form of NZ CPI q/q.
The current interbank midrate is: NZDAUD 0.8825 AUDNZD 1.1318
The interbank range this week has been: NZDAUD 0.8776- 0.8861 AUDNZD 1.1285- 1.1394
The British Pound (GBP) has grown another leg this week rising off 2.3200 (0.4350) levels to reach 2.3470 (0.4260) into Friday sessions. This marks a fresh high not seen since 17 November 2015. The push in the GBP comes off the back of escalating China/US trade tensions and developing “risk off” tone. UK GDP grew by 0.1% In August, with the small improvement suggesting Brittian may avoid a contraction in the third quarter. Next week both UK and NZ inflation data prints with NZ numbers predicted to drop from 2.7% to 2.6% ending September.
The current interbank midrate is: NZDGBP 0.4258 GBPNZD 2.3485
The interbank range this week has been: NZDGBP 0.4259- 0.4314 GBPNZD 2.3180- 2.3478
7 days ago, the Australian Dollar (AUD), British Pound (GBP) cross was trading at 0.4935 (2.0260) levels just prior to the close of the week. The GBP has since rallied hard improving on the AUD every day since to 0.4830 (2.0710) into Friday sessions. A combination of poor Aussie date and better UK news has reversed the last 6 weeks of topside AUD moves. The rush in the GBP comes off the back of escalating China/US trade tensions and fresh “risk off” tone. Meanwhile, UK GDP grew by 0.1% In August, with the small improvement suggesting Brittian may avoid a contraction in the third quarter.
The current interbank midrate is: AUDGBP 0.4821 GBPAUD 2.0742
The interbank range this week has been: AUDGBP 0.4819- 0.4896 GBPAUD 2.0424- 2.0751
After holding ground just under 0.6520 levels the Australian Dollar (AUD) fell away sharply against the US Dollar (USD) yesterday as job numbers released posting 0.6480. Australia’s unemployment rates rose from 4.3% to 4.5% in September the highest it’s been since September 2021. This has bought about fresh rhetoric around rate cuts by the RBA in the coming months. However, the central banks may wait until third quarter CPI before making a decision when to resume monetary easing. Stiff support on the chart is 0.6415, a daily close below this level and the cross may take a look at 0.6200 areas.
The current interbank midrate is: AUDUSD 0.6482
The interbank range this week has been: AUDUSD 0.6440- 0.6531
The New Zealand Dollar (NZD) has held levels around 0.5725 this week against the US Dollar (USD) on a lack of economic data. The kiwi surged higher off the back of poor Aussie jobs numbers yesterday from 0.5720 reaching 0.5740 but was soon sold off. The US govt shutdown rolls on while tensions between China and the US increase with both increasing port fees Tuesday in retaliation to fees on Chinese ships. Next week we have CPI from both countries publishing which will certainly add volatility.
The current interbank midrate is: NZDUSD 0.5724
The interbank range this week has been: NZDUSD 0.5682- 0.5755
