AVN 67.10 Increased By ▲ 1.90 (2.91%)
BAFL 31.00 Increased By ▲ 0.26 (0.85%)
BOP 4.90 Increased By ▲ 0.10 (2.08%)
CNERGY 3.78 Increased By ▲ 0.07 (1.89%)
DFML 14.43 Increased By ▲ 0.22 (1.55%)
DGKC 41.85 Increased By ▲ 0.80 (1.95%)
EPCL 46.57 Increased By ▲ 0.12 (0.26%)
FCCL 11.69 Increased By ▲ 0.29 (2.54%)
FFL 5.07 Increased By ▲ 0.02 (0.4%)
FLYNG 5.80 No Change ▼ 0.00 (0%)
GGL 10.42 Increased By ▲ 0.09 (0.87%)
HUBC 68.00 Increased By ▲ 1.13 (1.69%)
HUMNL 5.76 Increased By ▲ 0.05 (0.88%)
KAPCO 28.10 Increased By ▲ 0.34 (1.22%)
KEL 2.29 Increased By ▲ 0.09 (4.09%)
LOTCHEM 25.05 Increased By ▲ 0.15 (0.6%)
MLCF 21.69 Increased By ▲ 0.25 (1.17%)
NETSOL 86.00 Increased By ▲ 2.40 (2.87%)
OGDC 92.38 Increased By ▲ 6.48 (7.54%)
PAEL 11.09 Increased By ▲ 0.08 (0.73%)
PIBTL 4.24 Increased By ▲ 0.02 (0.47%)
PPL 80.15 Increased By ▲ 5.67 (7.61%)
PRL 13.64 Increased By ▲ 0.21 (1.56%)
SILK 0.90 Decreased By ▼ -0.02 (-2.17%)
SNGP 43.47 Increased By ▲ 3.07 (7.6%)
TELE 5.96 Increased By ▲ 0.10 (1.71%)
TPLP 15.73 Increased By ▲ 0.33 (2.14%)
TRG 115.01 Increased By ▲ 3.60 (3.23%)
UNITY 13.85 Increased By ▲ 0.10 (0.73%)
WTL 1.16 Increased By ▲ 0.02 (1.75%)
BR100 4,124 Increased By 87 (2.16%)
BR30 14,930 Increased By 518.1 (3.59%)
KSE100 41,191 Increased By 719.6 (1.78%)
KSE30 15,494 Increased By 331.4 (2.19%)

Australia, NZ dollars near 1 month highs on BoC rate outlook

  • Other domestic data in both Australia and New Zealand have also surprised expectations.
Published April 22, 2021
Follow us

SYDNEY: The Australian and New Zealand dollars hovered near recent one-month highs on Thursday with major commodity-linked currencies getting a boost from a hawkish tilt by the Bank of Canada which expects to start tightening policy next year.

The BoC signalled it could start hiking interest rates in late-2022, providing a lift to the Canadian dollar, with small spillovers to other commodity currencies such as the Aussie and the kiwi dollars.

The Australian dollar was last at $0.7750, not far from a one-month high of $0.7816 reached earlier this week.

Next stop is around $0.7820 levels with solid chart support seen around $0.7720 region.

The New Zealand dollar was flat at $0.7212 after going as high as $0.7227 on Tuesday, a level not seen since March 18.

"The hawkish tilt by the Bank of Canada (BoC) was the biggest event overnight," Tapas Strickland, economist at the National Australia Bank, wrote in a morning note.

"The key question for markets is does the BoC statement prove to be a watershed moment for central banks in which they revert back to outcomes-based guidance as the data improves and away from calendar-based guidance that was calibrated in the depths of the pandemic?"

The BoC held its overnight rate at 0.25% on Wednesday and signalled it could start raising rates late next year as it sharply boosted its outlook for the Canadian economy and reduced the scope of its bond buying program. The Canadian dollar jumped 0.8%.

Investor attention will next be on US Federal Reserve Chair Jerome Powell next week as well as on the Reserve Bank of Australia's (RBA) monthly policy meeting on May 4, Strickland added.

Australia's unemployment rate has fallen much quicker than forecast led by a boom in the jobs market thanks to timely and sharp monetary and fiscal stimulus as well as the country's success in curbing the pandemic and allowing its domestic economy to largely reopen.

Other domestic data in both Australia and New Zealand have also surprised expectations.

New Zealand government bonds rose, sending yields about two basis points lower at the long-end of the curve.

Australian government bond futures were mixed, with the three-year bond contract down a tick at 99.73. The 10-year contract rose 3 ticks to 98.34.


Comments are closed.

Australia, NZ dollars near 1 month highs on BoC rate outlook

Intra-day update: KSE-100 up over 800 points amid return of positive sentiment

Second hike in two weeks: Honda Atlas jacks up car prices by up to Rs550,000

Govt projection of achieving $3bn current account surplus in FY23 ‘unrealistic’: PBC

Tariff of indigenous gas-run CPPs likely to be reviewed

Talks extended for two days: IMF demands govt withdraw power subsidy

IHC bars Sindh, Balochistan police from taking action against Sheikh Rashid

Former military ruler Musharraf’s body to be flown to Pakistan

Govt schedules All Parties Conference for February 9

All set for inking pact with Denmark under DETI

Major earthquake hits Turkey, Syria; hundreds dead, many trapped