- AUD/NZD struggles to stay over the line at 1.0700.
- GDT dairy auction resulted in a 0.4% fall in prices overall, while markets await Aussie GDP.
AUD/NZD has ducked away from the 1.07 handle of late, unable to find further traction despite what appears to be a divergence between the relative central banks following a steady hand from Reserve Bank of Australi yesterday.
AUD/USD started a recovery from 0.6695 to above 0.6720 as the RBA repeated its upbeat growth outlook while NZD/USD climbed from 0.6295 pre-US ISM manufacturing to 0.6330 – (The data arrived at 49.1 for August versus 51.2 in July which was the first sub-50 reading since August 2016 and is the weakest figure since January 2016).
Closer to home, for the Kiwi, the GDT dairy auction resulted in a 0.4% fall in prices overall, with key product whole milk powder down 0.8%, skim up 0.7%, and butter unchanged. A combination of all these inputs has seen the AUD/NZD cross move higher from 1.0660 to 1.0709 for a four-month high before wilting at this psychological area.
Australia’s Quarter 2 GDP on the cards
Looking ahead, we have some key data coming from Australia’s Quarter 2 GDP – Analysts at Westpac cam with a forecast of 0.5%qtr, 1.4% year, in line with the updated Bloomberg consensus – “This is at least a long way from the recent talk of a headline zero or negative quarterly number, but with population growth around 1.6%yr, it is a contraction in output per capita. In yesterday’s statement, the RBA conceded H1 2019 growth “has been lower than earlier expected” but insisted that growth “is expected to strengthen gradually to be around trend over the next couple of years.”
AUD/NZD levels
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