AGL 39.95 Increased By ▲ 0.24 (0.6%)
AIRLINK 191.50 Increased By ▲ 1.65 (0.87%)
BOP 9.48 Decreased By ▼ -0.35 (-3.56%)
CNERGY 7.10 Increased By ▲ 0.09 (1.28%)
DCL 10.27 Increased By ▲ 0.03 (0.29%)
DFML 42.20 Increased By ▲ 0.89 (2.15%)
DGKC 107.20 Increased By ▲ 1.21 (1.14%)
FCCL 37.65 Decreased By ▼ -0.07 (-0.19%)
FFBL 97.98 Increased By ▲ 4.57 (4.89%)
FFL 14.95 Decreased By ▼ -0.05 (-0.33%)
HUBC 122.16 Decreased By ▼ -0.14 (-0.11%)
HUMNL 14.38 Increased By ▲ 0.07 (0.49%)
KEL 6.18 Decreased By ▼ -0.14 (-2.22%)
KOSM 8.09 Decreased By ▼ -0.03 (-0.37%)
MLCF 49.00 Increased By ▲ 0.22 (0.45%)
NBP 72.40 Increased By ▲ 0.09 (0.12%)
OGDC 229.50 Increased By ▲ 6.55 (2.94%)
PAEL 35.33 Increased By ▲ 1.71 (5.09%)
PIBTL 9.34 Decreased By ▼ -0.33 (-3.41%)
PPL 204.00 Increased By ▲ 2.55 (1.27%)
PRL 35.40 Increased By ▲ 1.60 (4.73%)
PTC 26.45 Decreased By ▼ -0.14 (-0.53%)
SEARL 114.81 Decreased By ▼ -2.06 (-1.76%)
TELE 9.43 Decreased By ▼ -0.20 (-2.08%)
TOMCL 38.40 Increased By ▲ 1.79 (4.89%)
TPLP 13.08 Increased By ▲ 1.13 (9.46%)
TREET 25.44 Increased By ▲ 0.95 (3.88%)
TRG 62.03 Increased By ▲ 0.67 (1.09%)
UNITY 35.56 Decreased By ▼ -0.50 (-1.39%)
WTL 1.93 Increased By ▲ 0.14 (7.82%)
BR100 12,275 Increased By 125.7 (1.03%)
BR30 38,428 Increased By 334.8 (0.88%)
KSE100 115,745 Increased By 1443 (1.26%)
KSE30 36,392 Increased By 586.6 (1.64%)
Print Print 2020-03-28

Australian, New Zealand dollar get a reprieve

The Australian and New Zealand dollars were boasting their best weekly performance in eight years on Friday after dire US jobs data and another pledge of unlimited easing by the Federal Reserve undermined their US counterpart.
Published 28 Mar, 2020 12:00am

The Australian and New Zealand dollars were boasting their best weekly performance in eight years on Friday after dire US jobs data and another pledge of unlimited easing by the Federal Reserve undermined their US counterpart.
The Aussie was up at $0.6066, having rallied all the way from a $0.5870 low on Thursday. That left it with gains of 4.4% for the week so far, its best showing since late 2011.
Resistance is just ahead at $0.6088, with another layer around $0.6150.
The swing was quite a turnaround given just a week ago it carved out a 17-year trough at $0.5510 as global markets went into meltdown.
The New Zealand dollar vaulted to $0.5960, having been down as far as $0.5779 at one stage on Thursday.
It was up 4.6% for the week so far, again the biggest rise since 2011.
The rally came as a staggering spike of 3.28 million in US jobless claims led Fed Chair Jerome Powell to promise the bank would lend "aggressively" to cushion the impact of the coronavirus.
At home, both the Reserve Bank of Australia (RBA) and the Reserve Bank of New Zealand (RBNZ) have been busy buying government bonds to lift liquidity and keep yields low.
The RBA on Friday offered to buy another A$3 billion of government paper, bringing purchases to A$16 billion since it started the program n March 20.
The RBNZ on Friday said it would buy NZ$1.35 billion of NZ government paper next week, almost twice the NZ$750 million it had initially signalled.
All this buying has helped keep Aussie three-year bond yields down at 0.306%, and just a whisker above the 0.25% cash rate.
Yields on NZ 10-year debt have steadied at 1.115%, having briefly spiked as high as 1.803% last week when markets were in a panic.
The Fed's unswerving commitment has boosted equities globally and eased liquidity strains in debt markets, in turn aiding risk assets including the Aussie and kiwi.
"The grim economic news that will continue to unfold in coming weeks is, we can conclude, largely discounted," said Ray Attrill, head of FX strategy at NAB.
"Monetary and fiscal policy support being meted out in ever larger quantities is currently in the driving seat for markets," he added.
"The improvement in risk sentiment this week is seeing the air come out of this month's USD rally."

Copyright Reuters, 2020

Comments

Comments are closed.