The Australian dollar stayed on the defensive on Tuesday as investors weighed the risk of further policy easing, including unconventional stimulus steps, while the New Zealand dollar drew support from upbeat local data.
The Aussie was stuck at $0.6776 having come within a whisker of breaching major support at the November low of $0.6770.
The kiwi dollar again outperformed by holding at $0.6417, having found solid support at $0.6395. The kiwi got a boost from data showing retail sales volumes surged a surprisingly strong 1.6% in the third quarter, thanks in part to spending on electronic gadgets.
Such a turn could lessen the need for another cut in interest rates from the Reserve Bank of New Zealand (RBNZ), with market now implying only a 26% chance of a move at the next policy meeting on Feb. 12.
The risk was underlined by RBA Deputy Governor Guy Debelle on Tuesday, who warned that wage growth had become entrenched in a low 2-3% range and unemployment would need to fall further to get it up.
Investors are wagering it will take further stimulus to achieve this goal and are fully priced for a rate cut to 0.5% by the middle of next year.
03 Jun 2020 03:05 PM
The euro topped an 11-week high on Wednesday, on track for a seven-day winning streak
03 Jun 2020 02:34 PM
The Indian rupee fell for the first time in four sessions against the U.S. currency, as consistent dollar demand from state-run banks
03 Jun 2020 11:45 AM
Indian shares extended gains for a sixth session and the Nifty crossed the 10,000 mark for the first time since March 13, as Asia's third-largest economy gradually comes out of COVID-19 lockdowns and risk appetite picks up in global markets.
03 Jun 2020 11:16 AM
The yuan took a breather on Wednesday after strengthening against the dollar for four straight days
03 Jun 2020 10:45 AM
Gold traded steady on Wednesday after snapping a three-session winning streak in the previous day, as a rally in equity markets on hopes of more stimulus offset some support from a weaker dollar.
03 Jun 2020 10:32 AM
Indian rupee hit the highest level in five weeks and was at 75.23/75.24 to the dollar against 75.3625/75.3725 in the previous session