The Australian and NZ dollars rose to multi-week highs

47
Australian dollar and new zealand dollar

Risk-sensitive currencies, the Australian and New Zealand dollars, consolidated recent gains on February 9. Furthermore, a run of upbeat domestic data kept bold yields raised, while optimism on the global outlook declined the greenback. Improved market sentiment and optimistic economic surveys shifted the risk-sensitive currencies to multi-week highs.

The Australian dollar increased by 0.32% and traded at $0.7727 versus the U.S. dollar, a level unseen since January 27. The currency was surging towards its January peak of $0.7819. A survey of business confidence pointed to a continuing economic rebound for the Antipodean country.

Furthermore, across the Tasman Sea, the New Zealand dollar boosted by 0.46% and traded at $0.7253, the highest level in a month, after finding support at $0.7220. Moreover, it edges towards its January peak of $0.7314.

Asian stock markets increased on February 9 after a record-setting day on Wall Street, while oil also reached 13-month highs, supported by growing optimism about a return in fuel demand.

New Zealand’s inflation expectations posted a large gain to 1.77%

According to Steven Dooley, APAC currency strategist at Western Union Business Solutions, both currencies today react to the powerful session overnight in U.S. equities, oil, and precious metals. He announced that the local data had boosted both the Australian and New Zealand dollars.

Moreover, a survey of Australian consumer sentiment revealed a bounce in February. This comes after a setback in January when partial lockdowns in some cities spooked households.

Based on a survey by the central bank, New Zealand’s inflation expectations for the year posted a large gain to 1.77%, while it stood at 1.23%. Meanwhile, two-year expectations boosted 30 basis points to 1.89%.

Additionally, yields on 10-year paper increased to 1.45%, a level unseen since January 2020. Significantly, at the beginning of the month, it stood at 1.15% and a trough of 0.49% back in September. Australian 10-year bond yields were at 1.23%, down from 1.27%.

  • Support
  • Platform
  • Spreads
  • Trading Instument

For more news updates, visit our homepage now and see our latest news article. Want to learn more about trading? Visit our education page now and learn for FREE!

Tags:

Leave a Reply

Sending