aud fundamentals
Article
Previous Articles
Print
- Friday, 16 October 2009 21:38:07 GMT Australian Dollar Forecast to Rally Further on RBA Rate Hikes
- Tuesday, 13 October 2009 01:21:45 GMT Australian Business Confidence Fell For First in Five Months, Says NAB
- Friday, 09 October 2009 23:10:05 GMT Australian Dollar May Simply Consolidate After RBA-Induced Rally
- Thursday, 08 October 2009 23:33:09 GMT Australian Dollar Sees another Dramatic Stretch to New Highs on Employment
- Thursday, 08 October 2009 00:29:27 GMT Australian Dollar Soars as Economy Unexpectedly Gains 40k Jobs, Unemployment Rate Falls
- Wednesday, 07 October 2009 21:16:33 GMT Australian Dollar Loses Some Steam Ahead of Employment Report
- Tuesday, 06 October 2009 18:44:08 GMT Australian Dollar US Dollar Exchange Rate Forecast
- Tuesday, 06 October 2009 02:59:35 GMT Australian Dollar Surges as RBA Unexpectedly Raises Interest Rates
- Monday, 05 October 2009 19:21:01 GMT Australian Dollar Gaining Steam Ahead of Tuesday's RBA Rate Decision
- Friday, 02 October 2009 23:38:47 GMT Australian Dollar Rally May Finally Be Losing Steam
- Friday, 02 October 2009 01:00:02 GMT Australian Inflation Slowest in Six Years, Says TD Securities
- Saturday, 26 September 2009 02:19:52 GMT Australian Dollar to Track Risk as Markets Digest G20 Outcome
- Friday, 25 September 2009 00:14:51 GMT Australian Dollar Traders More Concerned Over Risk Trends than Confirmations of Financial Stability
- Thursday, 24 September 2009 01:13:22 GMT Australia's New Home Sales Matched Record Gain in August, Says HIA
- Friday, 18 September 2009 23:52:45 GMT Australian Dollar Remains Supported By Interest Rate Expectations
- Thursday, 17 September 2009 23:59:24 GMT Commodity Bloc Data Ticks Higher Yet Aussie, Kiwi and Canadian Dollars Struggle
- Wednesday, 16 September 2009 01:47:20 GMT Australia Won't Raise Interest Rates Until Next Year, Says Westpac
- Friday, 11 September 2009 21:25:03 GMT Australian Dollar Strength May be Tested by Reserve Bank Rhetoric
- Thursday, 10 September 2009 02:13:48 GMT Australian Jobs Report Disappoints, Weighs on RBA Rate Hike Expectations
- Wednesday, 09 September 2009 03:36:11 GMT Australia's Economic Recovery May Flounder on Rising Interest Rates
The Reserve Bank of New Zealand (RBNZ) left their Official Cash Rate target unchanged at 2.50 percent, as expected, citing evidence that "international economic activity is stabilizing and international financial conditions are improving." RBNZ Governor Alan Bollard was somewhat optimistic in his post-meeting policy statement, saying that "for the first time in some months," there were "clear upside opportunities for activity." However, these comments were generally the sole confident notes as Bollard also noted downside risks to activity and inflation, with the appreciation of the New Zealand dollar creating an "unhelpful tension" with their projections. That said, Bollard wrote off the need to intervene in the FX markets, saying that neither intervention nor a rate cut would impact the currency. Going forward, the RBNZ has left the door open to "modest" reductions "in coming quarters" as they reiterated their previous statement that they "expect to keep the OCR at or below the current level through until the latter part of 2010." Keeping this in mind, the New Zealand dollar's initial rally in response to this policy decision could ultimately prove to be short-lived.
The Australian dollar gained on Wednesday, especially against the low-yielding Japanese yen, but the currency faces event risk overnight. The Australian labor markets started to deteriorate during the second half of 2008, and data may show that this is continuing through 2009. While we did see a surprise improvement in April, the May results are projected to show that the unemployment rate rose back up to 5.7 percent from 5.4 percent while the net employment change is anticipated to fall by 30,000. The latter report tends to have a greater impact on the Aussie since the figure rarely meets expectations and can lead to volatile short-term price action for the Australian dollar immediately following the news at 21:30 EDT.
Related Article: New Zealand Dollar Weekly Trading Forecast
Resources
