The Aussie and New Zealand dollar are trading higher on Thursday, but remain in a weekly range, signaling investor hesitation and impending volatility. Given that the trend has shifted upward lately, we believe that it may only be a matter of time before the Aussie and Kiwi attempt to break higher. Falling US Treasury yields and a weaker US dollar are likely to catalyze currency gains.
At 10.01 GMT, AUD / USD is trading at 0.7629, up 0.0016 or + 0.21%, while NZD / USD is trading at 0.7026, up 0.0012 or + 0.17%.
Australian dollar, qiwi traders tracking Treasury bond yields, US dollar
AUD / USD and NZD / USD are trading near their highest levels in almost two weeks, with traders monitoring the decline in Treasury yields after the minutes of the March Federal Reserve meeting offered no new catalysts to determine the direction of the market.
Fed officials remained wary of the risks of a pandemic – even as the US economic recovery picked up momentum amid massive stimulus – and pledged to support monetary policy until the recovery is safer, Wednesday minutes showed.
“Participants noted that it is likely that it will take some time before substantial further progress is made towards the Committee’s goals of maximum employment and price stability, and that, in accordance with the Committee’s results-based guidance, asset purchases will continue to at least at the current pace. until.”
ANZ April Survey Shows Falling Business Confidence
A preliminary reading of ANZ Bank’s monthly poll for April showed that overall confidence is becoming increasingly pessimistic, with a net 8% believing the overall economic outlook will deteriorate in the coming year.
The “own performance” metric, which was followed more closely, remained stable, with 16% looking forward to better times for their own business.
ANZ chief economist Sharon Zollner said the economy is under stress and strain.
“The pressure on costs is great, and low expectations for profitability suggest that firms are not optimistic about their ability to fully recoup this,” Zollner said.
Later today at 12:30 GMT, investors will have the opportunity to respond to the latest weekly initial jobless claims report. Economists surveyed by Dow Jones expect 694,000 first-time applications in the week ending April 3.
Fed Chairman Jerome Powell will speak at the International Monetary Fund’s World Economy Debate at 4:00 pm GMT on Thursday.
For all of today’s economic events, check out our economic calendar.