The Kiwi Dollar remains within its recent range, still trading just above the 64 US Cent level. US Data released overnight was net positive which saw the USD gain ground on most currencies. Market risk appetite appears to be fairly positive at the moment with global stock prices continuing to rally, with the NZD holding its ground despite USD strength overnight.
US Data Mainly Positive
Lots of US data released overnight ahead of the Thanksgiving Day holiday with results mainly on the positive side. Durable Goods orders surprised markets with a positive 0.6% growth number for October vs expectations of a 1.7% decline, while Q3 GDP was up to an annualised rate of 2.1% vs expectations of 1.9%. Also released overnight was Core Personal Consumption Expenditure (PCE), which fell back slightly to 1.6% in October vs expectations of 1.7%. The PCE number is widely regarded as the inflation rate the US Fed watches most closely.
AUD On Back Foot
The Australian Dollar came under some selling pressure yesterday as Westpac Bank revised its RBA interest rate expectations, now forecasting 2 rate cuts by June next year, which would take the cash rate down to 0.25%. The NZD/AUD cross rate remains well supported edging closer to the 0.9500 level.
The Day Ahead
On the local front there will be interest in the latest ANZ business confidence survey result to be released at 1.00pm this afternoon. Elsewhere markets are expected to be relatively quiet ahead of the Thanksgiving Day holiday in the U.S.
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