AGL 38.54 Increased By ▲ 0.97 (2.58%)
AIRLINK 129.50 Decreased By ▼ -3.00 (-2.26%)
BOP 5.61 Decreased By ▼ -0.03 (-0.53%)
CNERGY 3.86 Increased By ▲ 0.09 (2.39%)
DCL 8.73 Decreased By ▼ -0.14 (-1.58%)
DFML 41.76 Increased By ▲ 0.76 (1.85%)
DGKC 88.30 Decreased By ▼ -1.86 (-2.06%)
FCCL 35.00 Decreased By ▼ -0.08 (-0.23%)
FFBL 67.35 Increased By ▲ 0.85 (1.28%)
FFL 10.61 Increased By ▲ 0.46 (4.53%)
HUBC 108.76 Increased By ▲ 2.36 (2.22%)
HUMNL 14.66 Increased By ▲ 1.26 (9.4%)
KEL 4.75 Decreased By ▼ -0.11 (-2.26%)
KOSM 6.95 Increased By ▲ 0.10 (1.46%)
MLCF 41.65 Decreased By ▼ -0.15 (-0.36%)
NBP 59.60 Increased By ▲ 1.02 (1.74%)
OGDC 183.00 Increased By ▲ 1.75 (0.97%)
PAEL 26.25 Increased By ▲ 0.55 (2.14%)
PIBTL 5.97 Increased By ▲ 0.14 (2.4%)
PPL 146.70 Decreased By ▼ -1.70 (-1.15%)
PRL 23.61 Increased By ▲ 0.39 (1.68%)
PTC 16.56 Increased By ▲ 1.32 (8.66%)
SEARL 68.30 Decreased By ▼ -0.49 (-0.71%)
TELE 7.23 Decreased By ▼ -0.01 (-0.14%)
TOMCL 35.95 Decreased By ▼ -0.05 (-0.14%)
TPLP 7.85 Increased By ▲ 0.45 (6.08%)
TREET 14.20 Decreased By ▼ -0.04 (-0.28%)
TRG 50.45 Decreased By ▼ -0.40 (-0.79%)
UNITY 26.75 Increased By ▲ 0.35 (1.33%)
WTL 1.21 No Change ▼ 0.00 (0%)
BR100 9,806 Increased By 37.8 (0.39%)
BR30 29,678 Increased By 278.1 (0.95%)
KSE100 92,304 Increased By 366.3 (0.4%)
KSE30 28,840 Increased By 96.6 (0.34%)

SYDNEY: The Australian and New Zealand dollars were little changed on Thursday ahead of a key US inflation report where a high reading could offer more impetus for the Federal Reserve to raise rates, which could roil global risk sentiment.

The Aussie was idling at $0.6271, after sliding to a fresh 2-1/2 year low of $0.6236 in the previous session although a bout of buying overnight helped it off lows.

Resistance is now around $0.6300.

The kiwi dollar lay at $0.5606, after climbing 0.5% overnight.

t is sitting precariously close to the 2020 trough of $0.5469 and a break would take it to depths not seen since 2009 and the global financial crisis. “We think there is further downside for the Aussie in the near-term.

We think there is some more upside for the US dollar strength really until you get some rate certainty coming out of the Fed,“ said Jo Masters, chief economist at Barrenjoey in Sydney.

Masters expects another 75 basis point hike from the Fed in November before downshifting to 50 bp in December, which will likely take the top off the US dollar.

“But I still think the Aussie is going to struggle to have a smooth appreciation when geopolitical uncertainties are so high,” she said.

US inflation figures out later on Thursday are expected to reinforce bets that the Federal Reserve will continue to tighten policy aggressively.

Core inflation is projected to rise 6.5% year-on-year in September, compared with a gain of 6.3% the previous month.

Markets lay 82% odds for another 75 basis-point rate hike in November, versus 18% probability of a half-point bump.

Overnight, data showed US producer prices increased more than expected last month, although underlying goods prices posted their weakest reading in nearly 2-1/2 years.

Australia, NZ dollars await cue from US jobs data

Elsewhere, economic concerns mount and volatility persists.

British government borrowing costs surged on Wednesday after the Bank of England said it would end its emergency bond-buying on Friday.

Yields on Australian 10-year bonds eased 5 basis points to 3.996% after rising to the highest in two weeks in the previous session on spreading fears about financial stability.

Three-year yields also eased slightly to 3.483%, compared with 3.527%.

Comments

Comments are closed.