The South African Finance Minister is delivering a budget speech today. There may be a strong impact on ZAR, so what's going to happen?
Kiwi and Aussie stick to 1-month minimums
On Thursday, the Australian as well as New Zealand dollars were keeping to one-month minimums versus their American rival. It’s because the Reserve Bank of New Zealand decided not to have its interest rated altered. As for another contributing factor, demand for the US currency was broadly underpinned.
The currency pair AUD/USD didn’t change being worth 0.7818, thus demonstrating the lowest reading since January 10.
The US currency was mostly supported by higher American bond revenues. The profit on benchmark 10-year Treasury notes accounted for 2.837% on Thursday, which is close to recent four-year maximums.
However, the evergreen buck’s profits were neutralized by everlasting worries as for recent volatility on stock markets around the globe. On Friday, global shares went down after a firm American jobs report generated worries over growing inflation.
On Wednesday, financial markets started stabilizing, although market participants were still cautious because high bond revenues could make them head south once again.
The currency pair NZD/USD inched down 0.54% demonstrating a result of 0.7201 – it happens to be the lowest value since January 10.
The RBNZ left its benchmark interest rate intact on Thursday, so it currently accounts for 1.75%. The bank did as most investors and experts hoped for.
Commenting on the verdict, John McDermott, RBNZ Assistant Governor told that there’s a high probability that the bank could dare to change its rate in the nearer future. Moreover, most probably the bank’s next move would be exactly a cut. The governor told that if the bank sees huge moves in inflation hopes, the key financial institution is bound to act.
Estimating the US currency’s value versus a basket of six main currencies, the US dollar index stood still, sticking to 90.14. That’s off a more than two-week maximum of 90.27 demonstrated overnight.
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