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. ۔
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.
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