AUD/NZD slips near 1.1500 as New Zealand’s Trade Deficit YoY narrows in October
The post AUD/NZD slips near 1. 1500 as New Zealand’s Trade Deficit YoY narrows com. AUD/NZD loses ground for the second successive session, trading around 1. 1520 during the Asian hours on Friday. The currency cross depreciates as the New Zealand Dollar (NZD) receives support after the release of New Zealand’s Trade Balance data, which indicated that the Trade Deficit narrowed to NZD 2. 28 billion year-over-year in October from NZD 2. 39 billion. Exports rose 16% to NZD 6. 5 billion, while Imports rose 11% to NZD 8. 0 billion. However, the downside of the AUD/NZD cross could be restrained as the New Zealand Dollar (NZD) could face challenges due to the prevailing sentiment that the Reserve Bank of New Zealand (RBNZ) will deliver a rate cut next week. After a surprise cut by 50 basis points (bps) last month, the New Zealand central bank is expected to reduce its Official Cash Rate (OCR) by 25 bps to 2. 25% at its November meeting next week. The Australian Dollar (AUD) receives support as Australia’s preliminary S&P Global Manufacturing Purchasing Managers Index (PMI) climbed to 51. 6 in November, from 49. 7 prior. Meanwhile, Services PMI rose to 52. 7 in November from the previous reading of 52. 5, while the Composite PMI increased to 52. 6 in November versus 52. 1 prior. The AUD also finds support as expectations grow for a cautious stance from the Reserve Bank of Australia (RBA). Minutes from the RBA’s November meeting indicated the central bank may keep rates unchanged for an extended period if economic data continues to outperform. RBNZ FAQs The Reserve Bank of New Zealand (RBNZ) is the country’s central bank. Its economic objectives are achieving and maintaining price stability achieved when inflation, measured by the Consumer Price Index (CPI), falls within the band of between 1% and 3% and supporting maximum sustainable employment. The Reserve Bank of New Zealand’s (RBNZ) Monetary Policy Committee (MPC) decides. Continue reading AUD/NZD slips near 1.1500 as New Zealand’s Trade Deficit YoY narrows in October