Loading...

Home pages - full list (A-Z)

AUD, CAD and NZD Continue to Fall

#News #AUD #CAD #EUR #NZD #USD
Email share     Facebook     LinkedIn    Twitter

A better-than-expected print for Australian GDP growth was unable to prevent further Australian dollar weakness on Wednesday. After a short-lived jump on the 0.9 percent second-quarter reading (0.7 percent growth expected), the Aussie fell early in the European session to a two-year low of 71.45 US cents. In the hours following GDP, it also lost value against six of the seven other majors.

According to experts at Nomura, there wasn’t much that an upbeat GDP reading could have done for the Australian dollar. Per the Business Insider, the bank’s long list of reasons for Aussie uncertainty includes a cooling housing market, rising funding pressures, an increase in variable mortgage rates, easing global growth momentum, emerging market pressures and a Chinese economic slowdown.

In Canada, Prime Minister Trudeau is now seemingly playing the UK’s “no deal” card. Trudeau indicated on Tuesday that no NAFTA would be better for Canadians than a bad NAFTA.

Ahead of Wednesday’s meeting of the Bank of Canada, at which interest rates are expected to be left unchanged at 1.5 percent, recent weakness in the Canadian dollar persists. Over the past couple of weeks, USD/CAD has risen back to 1.32 and EUR/CAD heads confidently towards 1.53, although those rates remain close to 2016-2018 averages. The loonie fell on Wednesday to a five-month low versus the Swiss franc—it now buys only 73.8 Swiss rappen.

In New Zealand, wagers on an interest rate cut are growing at an alarming rate. “The chance of the Reserve Bank lowering the official cash rate in February has risen to 30 percent from virtually zero a month ago, according to swaps data,” reports Bloomberg’s Tracy Withers.

Like its Australian cousin, the New Zealand dollar fell to more than two-year lows versus the US dollar on Wednesday. When last seen, the kiwi fetched only 65.4 US cents; it also nears a three-year low versus the euro, at only 56.5 euro cents.

New Zealand dollar bulls were left dismayed on Tuesday after global dairy prices fell for the sixth time in the last seven auctions. Last week, ANZ reported New Zealand business confidence at its lowest level in ten years.

 

Further Reading

 

Disruptors Challenging Australian Banks in Forex Price and Service: ACCC Report

Key Takeaways from the ACCC inquiry into currency conversion services. BestExchangeRates referenced among comparison sites playing an important role in customer awareness of the excessive currency margins charged by banks.

Last update: 11 Dec, 2019

AUD/GBP Between a Rock and a Hard Place – USD Strength

AUD/GBP versus AUD/USD and GBP/USD

Both the Australian dollar and British pound sterling have had a hard time of late caught between the rock of the China/US trade war and the Brexit hard place.

Last update: 27 Aug, 2019

Australia Cuts Interest Rates to Record Low

RBA Australian dollar AUD currency news and forecasts

The RBA has cut Australian interest rates to a record low of 1 percent in an effort to boost inflation. The Australian dollar is slightly stronger following the widely expected decision but is expected to lose 5–7 percent of its value before year-end.

Last update: 14 Aug, 2019

  

Posted to: News

 
 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.
 

Get a Better FX Deal when you Send and Spend Abroad.

 

Do NOT follow this link or you will be banned from the site!