The Australian dollar firmed on Wednesday after a top central banker signalled the outlook for interest rates was still uncertain and stopped well short of adopting an outright easing bias as some had wagered on. The Aussie dollar hopped up 0.24 percent to $0.7139 in the wake of comments, but faces stiff resistance around $0.7150. The New Zealand dollar was a shade firmer at $0.6752.
Yields on three-year bonds edged up to 1.41 percent, from 1.376 percent, but remain below the cash rate. The three-year bond futures contract was still up 1 tick at 98.615, while the 10-year contract added 3 ticks to 98.1250. Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle reiterated that while the economy seemed to have slowed, the labour market was surprisingly strong and it would take time for that dichotomy to resolve itself.
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