AIRLINK 193.50 Decreased By ▼ -1.51 (-0.77%)
BOP 9.64 Decreased By ▼ -0.13 (-1.33%)
CNERGY 7.53 Increased By ▲ 0.17 (2.31%)
FCCL 37.70 Decreased By ▼ -1.07 (-2.76%)
FFL 15.60 Increased By ▲ 0.01 (0.06%)
FLYNG 25.59 Increased By ▲ 0.18 (0.71%)
HUBC 127.07 Decreased By ▼ -1.55 (-1.21%)
HUMNL 13.50 Decreased By ▼ -0.31 (-2.24%)
KEL 4.58 Increased By ▲ 0.09 (2%)
KOSM 6.10 Decreased By ▼ -0.20 (-3.17%)
MLCF 43.96 Decreased By ▼ -0.83 (-1.85%)
OGDC 203.24 Decreased By ▼ -0.36 (-0.18%)
PACE 6.40 Decreased By ▼ -0.02 (-0.31%)
PAEL 40.98 Decreased By ▼ -0.15 (-0.36%)
PIAHCLA 17.49 Increased By ▲ 0.77 (4.61%)
PIBTL 7.66 Decreased By ▼ -0.02 (-0.26%)
POWER 9.08 Increased By ▲ 0.04 (0.44%)
PPL 174.25 Increased By ▲ 0.34 (0.2%)
PRL 38.07 Decreased By ▼ -1.01 (-2.58%)
PTC 24.07 Decreased By ▼ -0.97 (-3.87%)
SEARL 107.24 Decreased By ▼ -1.82 (-1.67%)
SILK 0.97 Decreased By ▼ -0.02 (-2.02%)
SSGC 36.40 Decreased By ▼ -1.74 (-4.56%)
SYM 19.04 Decreased By ▼ -0.45 (-2.31%)
TELE 8.24 Decreased By ▼ -0.12 (-1.44%)
TPLP 11.78 Decreased By ▼ -0.35 (-2.89%)
TRG 64.88 Increased By ▲ 0.09 (0.14%)
WAVESAPP 11.63 Increased By ▲ 1.06 (10.03%)
WTL 1.68 Decreased By ▼ -0.01 (-0.59%)
YOUW 3.85 Decreased By ▼ -0.02 (-0.52%)
BR100 11,765 Decreased By -123.2 (-1.04%)
BR30 34,986 Decreased By -233.6 (-0.66%)
KSE100 111,487 Decreased By -543 (-0.48%)
KSE30 34,934 Decreased By -201.5 (-0.57%)

SYDNEY: The Australian and New Zealand dollars edged lower on Friday to just a whisker of their 11-month lows, again burdened by global risk aversion amid escalating tensions in the Middle East, while bonds took a breather from selling.

The Aussie eased 0.2% to $0.6318, having slipped to as far as $0.6296 overnight. Major support now lies around $0.6287, an 11-month low which it has failed to breach three times this month.

The kiwi was also off 0.2% to $0.5832, after touching a fresh 11-month low of $0.5816 overnight. The kiwi is on track for a weekly drop of 0.8%, after a soft third-quarter inflation report took out any chance of a surprise rate hike in November.

The two risk sensitive currencies have been struggling of late as escalating tensions in the Middle East has led investors to safe-haven assets such as gold and US dollar.

Lenny Jin, global FX Strategist at HSBC, believes a sustained recovery remains off the table for the Australian dollar, despite the recent hawkish messaging on rates from the reserve bank.

“A faster monetary policy transmission in Australia versus the US combined with minimal rate cut expectations for the RBA over 2024-2025 mean that we still expect relative rates to move against the AUD over the next few quarters.”

Australian bonds heaved a sigh of relief as US benchmark Treasury yields pulled back from the critical 5%.

Ten-year government bond yields fell 5 basis points to 4.742%, after hitting 4.801%, a fresh high since 2011. Three-year yields also eased 4 bps to 4.184%.

Comments

Comments are closed.