AUD/NZD trades near 1.1100 after pulling back from six-month highs
- AUD/NZD pulled back from a six-month high at 1.1131, reached on Thursday.
- Australia’s Private Capital Expenditure climbed 0.2% in Q2, against the expected 0.7% rise.
- The New Zealand Dollar struggles as the RBNZ officials indicated further reductions in the coming months.
AUD/NZD retreats after reaching a six-month high at 1.1131, trading around 1.1110 during the Asian hours on Thursday. However, the downside of the currency cross could be restrained as the Australian Dollar (AUD) gains ground following the release of Australia’s Private Capital Expenditure.
Australia’s Private Capital Expenditure rose 0.2% in the second quarter, from the previous decline of 0.1% but fell short of the expected 0.7% increase. The AUD/USD holds ground as the US Dollar (USD) struggles over US Federal Reserve (Fed) concerns.
Additionally, the AUD is also supported by hotter-than-expected Australian inflation data, which reduces expectations of a Reserve Bank of Australia (RBA) rate cut. Australia's Monthly Consumer Price Index jumped by 2.8% year-over-year in July, surpassing a 1.9% increase prior and 2.3% expected growth.
The Reserve Bank of Australia (RBA) Minutes of its August monetary policy meeting suggested that board members agreed that some further reduction in the cash rate is likely to be needed in the coming year.
The AUD/NZD cross may regain its ground as the New Zealand Dollar (NZD) continues to struggle after the Reserve Bank of New Zealand (RBNZ) cut its policy rate last week. The RBNZ officials indicated further reductions in the coming months as policymakers warned of domestic and global headwinds to growth.
RBNZ Governor Christian Hawkesby noted that the policy outlook is guided by data, but emphasized that if businesses and consumers stay cautious and require additional support, it could warrant further measures.
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the weakest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.01% | -0.06% | -0.24% | -0.02% | -0.04% | 0.03% | -0.16% | |
| EUR | -0.01% | -0.03% | -0.26% | -0.04% | -0.02% | 0.04% | -0.13% | |
| GBP | 0.06% | 0.03% | -0.20% | 0.03% | 0.01% | 0.09% | -0.10% | |
| JPY | 0.24% | 0.26% | 0.20% | 0.26% | 0.15% | -0.01% | 0.12% | |
| CAD | 0.02% | 0.04% | -0.03% | -0.26% | -0.03% | 0.06% | -0.03% | |
| AUD | 0.04% | 0.02% | -0.01% | -0.15% | 0.03% | 0.07% | -0.11% | |
| NZD | -0.03% | -0.04% | -0.09% | 0.01% | -0.06% | -0.07% | -0.17% | |
| CHF | 0.16% | 0.13% | 0.10% | -0.12% | 0.03% | 0.11% | 0.17% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
