(1) The Australian and New Zealand dollars were lower on Tuesday, and the sharp cut in the loan market Intrerest Rate (LPR) in major Asian countries failed to attract much interest from investors.
(2) AUD/USD is currently down 0.14% at 0.6528, up 0.1% overnight. For most of the past two weeks, the Aussie has been trading at the low end of the 0.65 range and would be Long to break above the 21-day moving average of $0.6539.
(3) The New Zealand dollar is currently down 0.16% to 0.6137 against the dollar, after rising 0.4% overnight to a high of $0.6153. Support is at $0.6040.
(4) The February LPR of major Asian countries cut interest rates asymmetrically as expected. While maintaining a stable trend in the one-year period, it was lowered after a gap of eight months for more than five years, and the magnitude was a record 25 basis points, which clearly conveyed the policy signal of fully supporting the real estate.
(5) However, the move failed to boost market sentiment, with Sean Callow, senior Exchange rate strategist at Westpac Bank, saying Aussie traders are likely to be wary of the lack of incentives from the onshore market.
(6) The minutes of its February 5-6 policy meeting released on Tuesday showed that the Reserve Bank of Australia considered raising interest rates by another 25 basis points, but ultimately decided to keep Intrerest Rate unchanged as inflation progressed and the labour market loosened faster than expected.
(7) Taylor Nugent, senior economist at National Australia Bank (NAB), said, "We didn't get Long or little new from the February minutes. We expect the RBA to take a cautious approach to easing policy settings. Rising unemployment by November, coupled with inflation close to the target range, should be enough for the RBA to act"
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The Australian and New Zealand dollars fell, and the LPR rate cut failed to spur buying interest
(1) The Australian and New Zealand dollars were lower on Tuesday, and the sharp cut in the loan market Intrerest Rate (LPR) in major Asian countries failed to attract much interest from investors. (2) AUD/USD is currently down 0.14% at 0.6528, up 0.1% overnight. For most of the past two weeks, the Aussie has been trading at the low end of the 0.65 range and would be Long to break above the 21-day moving average of $0.6539. (3) The New Zealand dollar is currently down 0.16% to 0.6137 against the dollar, after rising 0.4% overnight to a high of $0.6153. Support is at $0.6040. (4) The February LPR of major Asian countries cut interest rates asymmetrically as expected. While maintaining a stable trend in the one-year period, it was lowered after a gap of eight months for more than five years, and the magnitude was a record 25 basis points, which clearly conveyed the policy signal of fully supporting the real estate. (5) However, the move failed to boost market sentiment, with Sean Callow, senior Exchange rate strategist at Westpac Bank, saying Aussie traders are likely to be wary of the lack of incentives from the onshore market. (6) The minutes of its February 5-6 policy meeting released on Tuesday showed that the Reserve Bank of Australia considered raising interest rates by another 25 basis points, but ultimately decided to keep Intrerest Rate unchanged as inflation progressed and the labour market loosened faster than expected. (7) Taylor Nugent, senior economist at National Australia Bank (NAB), said, "We didn't get Long or little new from the February minutes. We expect the RBA to take a cautious approach to easing policy settings. Rising unemployment by November, coupled with inflation close to the target range, should be enough for the RBA to act"