FXstreet.com (Barcelona) - FX markets continued to trade in their narrow ranges on Friday with few major data releases. The September numbers for China RMB loans showed an increase by 623B - lower than market expectations of 700B. However, these numbers were offset by other types of social financing (1.65 trillion). According to Research Analyst Chris Walker at UBS, “Our economists note that the restrictions on lending to local government platforms outright, banks and borrowers have resorted to other forms of credit expansion.”
Moving towards the antipodean markets, New Zealand Finance Minister English repeated that he strong New Zealand dollar is a 'headwind' for exporters. “We see latitude for the NZD/USD targeting 0.8000 within three months.” Walker adds.
In Australia however, another of Australia's Big 4 commercial banks chose not to pass on the recent RBA rate cut in full. “This raises the risk that the RBA will again have to cut by more than it intends just so as to deliver the desired amount of easing to the real economy – we foresee a testing of parity levels for the AUD/USD within three months.” he predicts.
Moving towards the antipodean markets, New Zealand Finance Minister English repeated that he strong New Zealand dollar is a 'headwind' for exporters. “We see latitude for the NZD/USD targeting 0.8000 within three months.” Walker adds.
In Australia however, another of Australia's Big 4 commercial banks chose not to pass on the recent RBA rate cut in full. “This raises the risk that the RBA will again have to cut by more than it intends just so as to deliver the desired amount of easing to the real economy – we foresee a testing of parity levels for the AUD/USD within three months.” he predicts.
