Loading...

Home pages - full list (A-Z)

AUD, NZD Lead the Pack; No Imminent Recovery for CAD (SocGen)

The Australian and New Zealand dollar currencies were way out in front this week on the list of top performing FX majors. The Canadian dollar, meanwhile, continues to suffer from what is now a technical bear market in crude oil. Sterling is again under Brexit-related pressure amid reports of potential UK ministerial resignations.

Currency-News AUD CAD GBP NZD USD
Email share     Facebook     LinkedIn    Twitter
 

Approaching the end of Friday’s European session, a 5-day gain of 0.7 percent for the Australian dollar relative to the US dollar saw it better all comers with the exception of the outstanding New Zealand dollar, which gained 1.7 percent. When last seen at 4:30pm in London, AUD/USD and NZD/USD were trading at respective rates of $0.7241 and $0.6744.

NZD to USD - 1 Week chart - Latest
NZD/USD - 1 Week Chart - Latest

It should be said that gains against the US dollar perhaps mask how well the antipodes are doing. Newfound support for the world’s reserve currency means that the Aussie and kiwi are now settling for half the gains they held 24 hours ago. As measured by the US Dollar Index, the greenback has now eliminated nearly all of its November losses, which isn’t surprising given that we’ve entered what is usually the currency’s strongest period of the year.

Against other majors, the Australian dollar and New Zealand dollar look even better. Consider that AUD/CAD is 1.6 percent higher this week—the Canadian dollar simply can’t catch a break amid the ongoing plunge in the price of oil, which Canada exports in great quantities. Now at a 16-week low of C$1.323 to the US dollar, the Canadian dollar is in need of a shot in the arm, which might come on Sunday should OPEC and Russia agree to oil production cuts for 2019.

“The Canadian dollar still looks cheap but the price of oil . . . counts against it. Frustration will continue and a return to levels below C$1.30 [per US dollar] isn’t imminent,” Société Générale wrote in a note to clients on Thursday.

USD to CAD - 1 Week chart - Latest
USD/CAD - 1 Week Chart - Latest

Back with the Australian dollar, a daily close above $0.7280 is what’s needed to indicate a “mid to long-term bottom,” UOB analysts have said. Since breaking an important technical downtrend on November 1st, the Aussie has tested as high as $0.73 but is yet to close above $0.7273.

For the New Zealand dollar, per UOB, $0.6850 is the line which, if crossed, takes the currency into “its next bullish phase.”

Like the Aussie and kiwi, sterling has thrived of late but it will end the week a long way below Wednesday’s high of $1.3175, at only $1.2983. Britain’s currency faltered on Friday against all of the majors amid reports that Prime Minister May faces ministerial resignations over a Brexit “betrayal.”

 

Further Reading

 

Dollar Turbocharged by Economic Data; At Long-Term High Versus Euro, Franc and Krona

A turbocharged US dollar is likely to be “stronger for longer” after reaching long-term highs against a host of major currencies, including the euro, Swiss franc and Swedish krona.

Last update: 25 Apr, 2019

Aussie dollar in the trenches after low inflation result

The RBA has resisted cutting interest rates lower than the record 1.5 per cent, however, this week’s lower than expected inflation data could make a cut inevitable.

Last update: 25 Apr, 2019

Swiss Franc Slumps to 6-Month Low Versus Euro

The Swiss franc continued its shocking run of form on Tuesday, slipping against the euro to its weakest level in 6 months.

Last update: 23 Apr, 2019

8 Percent Drop Coming Soon for Australian Dollar; RBA “Wants a Weaker Currency”

HSBC has reaffirmed its US66¢ year-end forecast for the Australian dollar, thereby signalling an upcoming 8 percent slide in the world’s fifth most traded currency.

Last update: 22 Apr, 2019

WorldFirst World Account – BER Review

WorldFirst World Account – Independent BER Review World Account: A Summary WorldFirst, a market leader in the international payments space, offers a multi-currency “World Account” that allows businesses to hold, send and receive funds in 8 major currencies (GBP, EUR, USD, AUD, CAD, JPY, SGD and NZD). With a World Account, businesses can invoice customers […]

Last update: 24 Apr, 2019

  

Tags: Currency-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!