Comments from the bank overnight on the Australian and New Zealand dollars

  • Commodity currencies are faring relatively well this morning as oil prices hold onto the bulk of yesterday's gains.
  • The AUD may also have benefitted from a rise in iron ore prices overnight as well as a healthy print on China's Caixin services PMI, which moved to a three- year high of 53.9.
  • Our economists note that China's services sector, which accounts for over half the economy and generally echoes consumer spending, looks set to support growth alongside the robust readings for the manufacturing PMI.
  • The NZD has also enjoyed a good bounce overnight against a retreating USD after a more challenging session yesterday.

HSBC are right to draw attention to iron ore - prices are up strongly from their lows of October last year: