Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Australia dlr lifted as RBA stands pat, NZ dlr dragged higher

Published 02/05/2017, 03:40 pm
Updated 02/05/2017, 03:50 pm
Australia dlr lifted as RBA stands pat, NZ dlr dragged higher

By Cecile Lefort and Charlotte Greenfield

SYDNEY/WELLINGTON, May 2 (Reuters) - The Australian dollar drifted higher on Tuesday after the central bank kept rates unchanged at a policy meeting and sounded a touch more optimistic about global growth, underlining the outlook for steady policy.

The Australian dollar AUD=D4 rose to $0.7550, from $0.7527 in early trade, away from a trough of $0.7452 touched on Monday.

Resistance was seen around $0.7566 and support at $0.7473.

The Reserve Bank of Australia (RBA) kept rates at a record low of 1.5 percent following two easings last year. ID:nRBA All 71 economists in a Reuters poll expected a steady outcome this week. AU/INT

"The RBA reaffirmed its neutral stance and was more constructive in terms of the global economy," said Elias Haddad, a senior strategist at Commonwealth Bank of Australia.

Yet, he added that the RBA's reference to low wage growth was likely to limit any significant upside for the Aussie.

Interbank futures 0#YIB: show almost no chance of an easing this year, while a majority of 58 economists forecast an interest rate hike by June 2018. ID:nL4N1I02HF

Helping the Aussie was broad yen weakness which sent the Aussie to a one-month high of 84.26 AUDJPY=R . It was last at 84.36, having gained more than a yen since Monday.

Likewise, the New Zealand dollar rose 0.2 percent on the yen to 77.38 NZDJPY=R , away from a trough of 76.09 touched last week.

That also supported the New Zealand dollar NZD=D4 against its U.S. counterpart.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"Of note is some recovery in the NZD. It seems a long time since we've been able to say that after a period of relentless selling pressure," said Jason Wong, currency strategist at BNZ, adding that the Kiwi had managed not to break below the key technical support level of $0.6850.

The Kiwi ground up to $0.6925 from a near-eleven-month low of $0.6852 the previous day and a solid week of daily losses.

New Zealand government bonds 0#NZTSY= eased, sending yields 3 basis points higher at the long end of the curve.

Australian government bond futures eased, with the three-year bond contract YTTc1 off 3 ticks at 98.130. The 10-year contract YTCc1 dropped 3.5 ticks to 97.3600, while the 20-year contract YXXc1 lost 3.5 ticks to 96.7750. (Editing by Kim Coghill)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.