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AUD/NZD can rise further towards 1.20 – SG

FXStreet (Córdoba) - Kit Juckes, Research Analyst at Societe Generale, points out that the AUD/NZD could rise further as rates in New Zealand and Australia converge.

Key quotes:

“With the dairy industry still under pressure, New Zealand's terms of trade suffering and the risk of further CNY weakness a threat, there's still room for NZD to fall, both against G3 currencies and against the Australian dollar”

As NZ /Australian rates converge, a move in AUD/NZD towards 1.20 seems likely. This morning's strong Australian employment data (jobs +17,400 on the back of 11,500 full-time gains, and the unemployment rate down a tick to 7.2%) don't make a further RBA cut impossible in the current climate, but perhaps do suggest that Australia is a little further into its adjustment, having started cutting rates much earlier.”

Bank of England non-event - UBS

The Bank of England left the bank rate unchanged at 0.5% and also kept its asset purchase program at GBP 375bn at its September meeting. The voting pattern was also unchanged, with 8:1 members voting to maintain the current bank rate. Only Ian McCafferty voted for an immediate increase to 0.75%. Since this was broadly expected by consensus, sterling remained broadly unchanged after the announcement.
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EUR/USD: up to test 1.13 handle; not there quiet yet

EUR/USD has been on the bid from below the 200 SMA at 1.1196 and crossed above the 200 DMA at 1.1254 on a sharp spike and run on the greenback and now is set-up to pop the 1.13 handle to test offers at 1.1320.
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