AIRLINK 173.15 Increased By ▲ 15.74 (10%)
BOP 10.65 Increased By ▲ 0.28 (2.7%)
CNERGY 8.52 Increased By ▲ 0.20 (2.4%)
CPHL 97.46 Increased By ▲ 4.57 (4.92%)
FCCL 47.25 Increased By ▲ 0.52 (1.11%)
FFL 15.42 Increased By ▲ 0.54 (3.63%)
FLYNG 28.13 Increased By ▲ 1.15 (4.26%)
HUBC 138.91 Increased By ▲ 4.90 (3.66%)
HUMNL 12.81 Increased By ▲ 0.29 (2.32%)
KEL 4.54 Increased By ▲ 0.33 (7.84%)
KOSM 5.55 Increased By ▲ 0.16 (2.97%)
MLCF 62.26 Increased By ▲ 1.38 (2.27%)
OGDC 214.75 Increased By ▲ 6.23 (2.99%)
PACE 5.55 Increased By ▲ 0.15 (2.78%)
PAEL 44.86 Increased By ▲ 4.08 (10%)
PIAHCLA 18.70 Decreased By ▼ -0.10 (-0.53%)
PIBTL 10.74 Increased By ▲ 0.76 (7.62%)
POWER 12.26 Increased By ▲ 0.30 (2.51%)
PPL 173.87 Increased By ▲ 5.10 (3.02%)
PRL 36.22 Increased By ▲ 1.19 (3.4%)
PTC 23.56 Increased By ▲ 0.57 (2.48%)
SEARL 95.31 Increased By ▲ 2.21 (2.37%)
SSGC 39.13 Increased By ▲ 3.56 (10.01%)
SYM 14.02 Increased By ▲ 0.36 (2.64%)
TELE 7.23 Increased By ▲ 0.28 (4.03%)
TPLP 10.29 Increased By ▲ 0.29 (2.9%)
TRG 64.68 Increased By ▲ 4.01 (6.61%)
WAVESAPP 10.04 Increased By ▲ 0.34 (3.51%)
WTL 1.33 Increased By ▲ 0.03 (2.31%)
YOUW 3.70 Increased By ▲ 0.05 (1.37%)
BR100 12,492 Increased By 252.4 (2.06%)
BR30 37,694 Increased By 1300.9 (3.57%)
KSE100 116,189 Increased By 2036.1 (1.78%)
KSE30 35,750 Increased By 549.8 (1.56%)

SYDNEY: The Australian and New Zealand dollars slipped on Monday after ending August with hefty gains, with investors eyeing US jobs data for clues into the size of the anticipated September Fed rate cut, as well as local economic data.

The Aussie held at $0.6762, having scaled a fresh eight-month top of $0.6823 last week which left it 3.4% firmer last month.

Major resistance lies at $0.6871, a peak from last December, while support is around $0.6752 and $0.6705.

The kiwi dollar eased 0.2% to $0.6239, having reached an eight-month high of $0.6298 last week.

It was up a 5.1% last month, with support around $0.6230.

The pair were pressured by a rebound in the dollar on Friday after upbeat spending figures led markets to trim the chance of a half-point easing from the Federal Reserve.

Futures are 100% priced for a cut of 25 basis points on Sept. 18, and imply a 33% probability of 50 basis point.

The Commonwealth Bank of Australia predicts the Aussie could fall towards 67 cents if markets move to price closer to a 25 bp cut by the Fed in September.

The National Australia Bank said their model estimate for the local currency is close to the top of its fair value.

“AUD/USD will be volatile this week in response to the release of key US labour data… Overall, we expect the US labour data to show resilience and encourage the market to price a 25bp cut, supporting the USD,” said Joseph Capurso, head of international economics at the CBA.

TD Securities on Friday entered a short position on the kiwi dollar, in part due to the soft economic growth in New Zealand and stretched short-term valuation.

Australia, NZ currencies hold hefty monthly gains as US dollar wanes

It targets 60 cents in about 1-2 months.

All eyes are on the US payrolls report on Friday but before that, traders will have to digest data expected to show weakness in Australia’s economy and a speech from the Reserve Bank of Australia Governor Michele Bullock on Thursday.

gross domestic product data out on Wednesday will likely show that the economy grew a meagre 0.3% in the second quarter, following a 0.1% rise in the March quarter.

The subdued growth has been largely expected but a negative print could move the dial on rates.

Data out on Monday showed that inventories would subtract about 0.5% off the GDP last quarter, while building approvals bounced in July thanks to a surge in apartments.

Home prices climbed for a 19th straight month.

Comments

Comments are closed.