You've landed on our UK website.
Click here to visit our USA website.

If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

Weekly roundup: Cool risk appetite weighed on AUD and NZD, but RBA policymakers more upbeat

currency-newsWeekly roundup: Cool risk appetite weighed on AUD and NZD, but RBA policymakers more upbeat
Negative developments outweighed positive ones last week, with the Australian dollar and New Zealand dollar softened by an uncertain outlook.

AUD and NZD started the week on poor form, with NZD weakened by a surprise -1.1% decline in food prices during October.

Food price growth makes up around a fifth of the overall change in the consumer price index, so large movements here can have a significant knock-on effect for the overall direction of inflation.

Things improved for the Australian dollar on Tuesday after the minutes of the latest Reserve Bank of Australia (RBA) policy meeting showed that policymakers were now feeling more upbeat about the economy, lessening the chances of an interest rate cut.

Falling dairy prices weighed on the New Zealand dollar, however, with the latest Global Dairy Trade auction yielding a -3.4% drop in dairy prices.

Poor trade figures further soured market appetite for NZD, with the trade deficit failing to narrow as much as forecast in October.

The antipodean data calendar doesn’t really start until Wednesday, when Reserve Bank of New Zealand (RBNZ) Governor Philip Lowe appears before the Parliament Select Committee.

New Zealand building permits figures will be release late on Wednesday night, followed by the ANZ activity outlook and business confidence figures for November early on Thursday morning.

Australian private sector credit, capital expenditure and building approvals will be released at the same time as the New Zealand business confidence figures.

At the end of the day, New Zealand terms of trade data for the third quarter and the Australian AiG performance of manufacturing index for November will keep AUD and NZD moving during overnight trade and into Friday.

The week ends on a rather quiet note, with only the Australian commodity index for November set for release.
Philip McHugh

Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.