AIRLINK 63.43 Increased By ▲ 0.23 (0.36%)
BOP 5.46 Increased By ▲ 0.06 (1.11%)
CNERGY 4.68 Increased By ▲ 0.11 (2.41%)
DFML 19.02 Decreased By ▼ -0.71 (-3.6%)
DGKC 70.29 Increased By ▲ 1.29 (1.87%)
FCCL 19.12 Increased By ▲ 0.87 (4.77%)
FFBL 30.86 Increased By ▲ 1.47 (5%)
FFL 9.58 Increased By ▲ 0.27 (2.9%)
GGL 10.16 No Change ▼ 0.00 (0%)
HBL 109.20 Decreased By ▼ -0.86 (-0.78%)
HUBC 127.70 Increased By ▲ 1.69 (1.34%)
HUMNL 6.85 Increased By ▲ 0.12 (1.78%)
KEL 4.39 Decreased By ▼ -0.08 (-1.79%)
KOSM 4.43 Decreased By ▼ -0.02 (-0.45%)
MLCF 37.39 Increased By ▲ 0.79 (2.16%)
OGDC 128.50 Increased By ▲ 0.20 (0.16%)
PAEL 22.80 Decreased By ▼ -0.39 (-1.68%)
PIAA 26.50 Increased By ▲ 0.30 (1.15%)
PIBTL 6.19 Increased By ▲ 0.19 (3.17%)
PPL 112.52 Decreased By ▼ -0.28 (-0.25%)
PRL 26.85 Decreased By ▼ -0.30 (-1.1%)
PTC 16.75 Decreased By ▼ -0.34 (-1.99%)
SEARL 60.72 Decreased By ▼ -1.37 (-2.21%)
SNGP 65.35 Increased By ▲ 1.40 (2.19%)
SSGC 11.05 Increased By ▲ 0.02 (0.18%)
TELE 9.10 Decreased By ▼ -0.13 (-1.41%)
TPLP 11.28 Increased By ▲ 0.28 (2.55%)
TRG 69.85 Decreased By ▼ -1.10 (-1.55%)
UNITY 23.65 Decreased By ▼ -0.30 (-1.25%)
WTL 1.31 Decreased By ▼ -0.07 (-5.07%)
BR100 7,280 Increased By 64.2 (0.89%)
BR30 23,637 Increased By 105.1 (0.45%)
KSE100 70,315 Increased By 694.7 (1%)
KSE30 23,132 Increased By 221.5 (0.97%)

SYDNEY: The Australian and New Zealand dollars rose on Thursday, helped by the decline in the yen ahead of US inflation data that could give guidance on whether the US Federal Reserve will cut interest rates as early as March.

The Aussie rose 0.3% to $0.6723, having eked out a 0.2% gain overnight as the Japanese yen weakened. Against the yen, the Aussie dollar hit a fresh one-month top of 97.8 yen , after jumping 1% overnight.

Chart support versus the US dollar is around $0.6641.

The kiwi dollar also edged 0.3% higher to $0.6250, after slipping 0.2% overnight.

It looked buoyant against the Japanese yen as well, hitting a new one-month high at 90.88 yen, building on a 0.7% gain overnight.

The yen has taken a tumble after data showed real wages in Japan fell faster in November, suggesting there will be no rush for the Bank of Japan to tighten policy any time soon.

Apart from the broad weakness in the yen, Asian equity markets were upbeat on Thursday, supporting the risk-sensitive antipodeans. Data that showed Australia’s trade surplus surged to an eight-month high in November likely provided additional support to the Aussie as well.

Markets are still seeing 140 basis points (bps) of easing from the Federal Reserve this year and a two-thirds chance that rate cuts begin as soon as March - a view that could be challenged if US inflation surprises on the high side later in the day.

Australia, NZ dollars lean on support, inflation lurches lower

Alan Ruskin, chief international strategist at Deutsche Bank, said a 0.3% core CPI number, as forecast in a Reuters poll, would suggest downwards improvements for inflation were stalling out, given that it would be the fourth 0.3% monthly change in the past five months.

“This pattern would also have been regarded as poor inflation data in the pre-COVID period, and with growth data still showing signs that it can keep to near 2%, there is no urgency for the Fed to ease early,” Ruskin said.

The local bond market was on guard on Thursday, with three-year Australian government bond yields edging up 2 basis points to 3.765%. Ten-year yields were up by a similar amount to 4.139%.

Comments

200 characters