ForexLive Asia FX news wrap: AUD and NZD both drop

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Friday 14 June 2019  

Iron ore futures surged on the Dalian exchange in China, up nearly 4% on the session (as I update) to a fresh five year high. Have I mentioned before that the AUD seems to have thrown off the shackles of any correlation with iron ore? I have?. Good.

The Australian dollar was a loser on the session, as was the kiwi $.

NZD/USD started the slide early, the catalyst being a drop in manufacturing PMI (and poor details on sub-indexes to accompany the drop) for May. From above 0.6570 NZD/USD dropped to 0.6560 and continued to fall through the session to be barely off its lows as I post, circa 0.6530. 

Kiwi has had a soft week indeed:

Forex news for Asia trading Friday 14 June 2019  

AUD/USD followed along a little later. There were reports of a geopolitical nature. The US said it had, and later released what it said is, video footage of an Iranian boat removing a limpet mine from the side of a Japanese tanker. Alongside this we got news of China imposing duties on pipes (a certain class of) from the US and other countries. But what its most likely turned out to be driving the bus over the AUD today were more aggressive interest rate cut forecasts from Australian banks. The RBA is now seen at:

  • 0.75% (ie 2 more cuts) by November this year - NAb forecast
  • 0.5% in 2020 - RBC forecast
  • 0.5% in 2020 - Macquarie forecast

AUD/USD dropped under 0.6895 and is barely above as I update.

Moves were confined to tight ranges elsewhere, CAD, EUR, CHF a touch lower against the USD. GBP barely changed, as is yen.

Still to come:

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