Australia dlr takes comfort in Shanghai steps, jobs data

By Wayne Cole

SYDNEY, May 19 (Reuters) - The Australian and New Zealand dollars were re-taking lost ground on Thursday as signs of an easing in Shanghai's lockdown helped steady sentiment after a rout on Wall Street.

The Chinese financial hub will allow more businesses in zero-COVID areas to resume normal operations from the start of June, stirring hopes for a much-needed rebound in consumer demand.

The news helped the Aussie edge up 0.8% to $0.7008 AUD=D3 , after it retreated 1.1% overnight from a high of $0.7046.

The kiwi dollar bounced 0.6% to $0.6334 NZD=D3 , after losing 1.1% overnight from a top of $0.6370. Support comes in around $0.6292 and the recent two-year low of $0.6219.

The Aussie got some help from data showing Australia's unemployment rate at its lowest in almost 50 years at 3.9%. Overall employment rose only 4,000, but that masked a huge jump in full-time jobs.

The report cemented expectations the Reserve Bank of Australia (RBA) would likely raise interest rates by 25 basis points to 0.6% in June, though the market 0#YIB: has pretty much priced out any chance of a larger move.

The slide in shares has also seen investors trim wagers on how high interest rates will go this year, with futures implying a December rate of 2.63%, compared with 3.0% early in the month.

Shane Oliver, chief economist at AMP Capital, thinks there is still a chance of a larger move in June but does not see rates rising this year as far as the market is pricing.

"Given RBA concerns that inflation psychology might rise it is likely to step up the pace of tightening in June in order to get on top of inflation and so we expect 40bp taking the cash rate to 0.75%," he argued.

"By year end we continue to see the cash rate rising to between 1.5% and 2%."

In New Zealand, markets became even more certain of a half-point rate hike next week after data showed producer prices had surged in the first quarter.

The Reserve Bank of New Zealand (RBNZ) will meet on May 25, and swaps are fully priced for a rise to 2.0%. RBNZWATCH

"The RBNZ has accepted the logic that stronger action early on will reduce the need for an even more painful peak in rates in the future," said Westpac economist Michael Gordon.

"We recently updated our forecasts to include four consecutive 50bp hikes in the (official cash rate) - at the May, July and August reviews, on top of the one in April."
Reporting by Wayne Cole; Editing by Bradley Perrett

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。