- AUD/NZD firms as the Aussie gets a risk-on boost.
- Evergrande risks are abating, supporting the commodity-related currencies.
At 1.0330, AUD/NZD is 0.2% higher at the time of writing after travelling from a low of 1.0311 to a high of 1.0332. Commodity currencies are in favour and the downtrodden Aussie is benefitting the most from an improved risk-on environment.
Risk appetite improves
The improved risk appetite was reflected in Wall Street's major equity indexes, with the S&P 500 making its largest two-day percentage gain since late July. In yesterday's US session, the Federal Reserve said it will likely begin tapering its monthly bond purchases as soon as November which initially dented stocks and risk appetite. With that being said, traders are taking solace in a positive economic outlook in the Fed's forecasts instead and have cheered the conciliate words from Evergrande's spokespeople.
Evergrande has resolved one coupon payment on a Shenzhen-traded bond but was due to pay $83.5 million in interest on a $2 billion offshore bond on Thursday and also has a $47.5 million dollar-bond interest payment next week. There is a 30-day window to arrange the payments for which the company says it endeavours to settle.
''Evergrande Chairman Hui Ka Yan urged his executives late on Wednesday to ensure the delivery of quality properties and the redemption of its wealth management products, which are typically held by millions of retail investors in China,'' Reuters reported.
Overall, ''risks for the AUD seem to be improving, however, sentiment from Asian asset markets will remain key,'' analysts at ANZ Bank said in a note on Friday.
''Locally there isn’t much to get excited about – the RBNZ will kick off its tightening cycle next month, but with a 25 rather than 50bp hike, but this and follow-on hikes are well priced in already,'' the analysts said, adding, ''delta’s long tail is fading slowly, but we’re not out of the woods, and it’s a while before the next major piece of NZ data.''
Meanwhile, the RBNZ announced further tightening of LVR restrictions, this time targeted at owner-occupiers. ''While this tweak is unlikely to be a game-changer for the housing market, it adds to the growing pile of housing headwinds that have accumulated over 2021,'' analysts at ANZ Bank said.
|Today last price||1.0329|
|Today Daily Change||0.0010|
|Today Daily Change %||0.10|
|Today daily open||1.0319|
|Previous Daily High||1.0356|
|Previous Daily Low||1.0299|
|Previous Weekly High||1.0398|
|Previous Weekly Low||1.0278|
|Previous Monthly High||1.0592|
|Previous Monthly Low||1.0338|
|Daily Fibonacci 38.2%||1.0321|
|Daily Fibonacci 61.8%||1.0334|
|Daily Pivot Point S1||1.0294|
|Daily Pivot Point S2||1.0268|
|Daily Pivot Point S3||1.0237|
|Daily Pivot Point R1||1.035|
|Daily Pivot Point R2||1.0382|
|Daily Pivot Point R3||1.0407|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.