3 Dec 2013
AUD/NZD rounding up a bottom?
FXstreet.com (London) - AUD/NZD is consolidated from the price action in the AUD and NZD vs the dollar.
Strategists at Westpac Banking explained that the AUD/USD consolidated its earlier bounce off a three month low, ranging between 0.9096 and 0.9141 in NY, closing the week at 0.9108 but quickly trading around 0.9130 on Monday after the China data. They went onto explain how the NZD/USD made a net 25 pip gain in NY to 0.8135 then rallied further to 0.8155 in Monday morning trade as New Zealand’s Q3 terms of trade jumped 7.5% q/q, well ahead of 2.9% median and even Westpac’s 6% forecast. “Dairy prices led the way to the strongest level since 1973. This is a clear contrast to Australia’s ToT which peaked in Q3 2011 and is now almost -15% below the peak. Little wonder AUD/NZD is struggling to rally...”.
AUD/NZD from the calendar
The research team at Westpac noted a very crowded Australian data week that starts with Nov house prices and TD Securities inflation gauge. “Oct building approvals will be noted closely by the RBA given its hope that low interest rates encourage construction, which would both help fill the growth gap as mining investment declines and keep a lid on house price growth…The sharper than consensus drop we expect should do little net damage to AUD given the previous month’s strength”. Strategists at BBH said that while the Reserve Bank of Australia is not expected to change the cash rate which stands at a record low 2.50%, it may still keep the door open to further easing in 2014.
Strategists at Westpac Banking explained that the AUD/USD consolidated its earlier bounce off a three month low, ranging between 0.9096 and 0.9141 in NY, closing the week at 0.9108 but quickly trading around 0.9130 on Monday after the China data. They went onto explain how the NZD/USD made a net 25 pip gain in NY to 0.8135 then rallied further to 0.8155 in Monday morning trade as New Zealand’s Q3 terms of trade jumped 7.5% q/q, well ahead of 2.9% median and even Westpac’s 6% forecast. “Dairy prices led the way to the strongest level since 1973. This is a clear contrast to Australia’s ToT which peaked in Q3 2011 and is now almost -15% below the peak. Little wonder AUD/NZD is struggling to rally...”.
AUD/NZD from the calendar
The research team at Westpac noted a very crowded Australian data week that starts with Nov house prices and TD Securities inflation gauge. “Oct building approvals will be noted closely by the RBA given its hope that low interest rates encourage construction, which would both help fill the growth gap as mining investment declines and keep a lid on house price growth…The sharper than consensus drop we expect should do little net damage to AUD given the previous month’s strength”. Strategists at BBH said that while the Reserve Bank of Australia is not expected to change the cash rate which stands at a record low 2.50%, it may still keep the door open to further easing in 2014.