German data fails to lift euro from 1-week low

“The announcement of the increased trade tariffs has generated negative sentiment about global growth and that is exerting downward pressure on the euro despite the German data,” said Nikolay Markov, senior economist at Pictet Asset Management. “We expected the data to be worse than last month, but this is going to increase concerns about the state of the Chinese economy. The market will be very nervous and looking out for the PMI data,” said Commerzbank FX strategist Esther Maria Reichelt. The


“The announcement of the increased trade tariffs has generated negative sentiment about global growth and that is exerting downward pressure on the euro despite the German data,” said Nikolay Markov, senior economist at Pictet Asset Management. “We expected the data to be worse than last month, but this is going to increase concerns about the state of the Chinese economy. The market will be very nervous and looking out for the PMI data,” said Commerzbank FX strategist Esther Maria Reichelt. The
German data fails to lift euro from 1-week low Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-15
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German data fails to lift euro from 1-week low

The euro held at a one-week low on Wednesday, ignoring data from Germany that showed the economy returned to growth in the first quarter, as trade tensions between the world’s two biggest economies cast a shadow over risk appetite.

The single currency has been caught in the cross-currents of an escalating dispute between Washington and Beijing since last week, unable to conclusively rise above the $1.1250 level.

“The announcement of the increased trade tariffs has generated negative sentiment about global growth and that is exerting downward pressure on the euro despite the German data,” said Nikolay Markov, senior economist at Pictet Asset Management.

U.S. President Donald Trump threatened higher tariffs on billions of dollars of Chinese imports last week, and Beijing responded with planned tariff hikes of its own on Monday.

The escalation in the trade dispute comes at a time when latest data from Germany showed the economy returned to growth in the March quarter as householders spent more freely and construction activity picked up.

The single currency was broadly steady at $1.1213 – just above a one-week low of $1.1197 hit in the Asian session and more than 3% below a 2019 high of nearly $1.16 in early January.

Germany’s economic figures were a sole bright indicator in an otherwise slate of dismal data.

China on Wednesday reported surprisingly weaker growth in retail sales and industrial output for April, adding pressure on Beijing to roll out more stimulus as the trade war with the United States rumbles on.

“We expected the data to be worse than last month, but this is going to increase concerns about the state of the Chinese economy. The market will be very nervous and looking out for the PMI data,” said Commerzbank FX strategist Esther Maria Reichelt.

The Aussie dollar dropped as low as $0.6922, its lowest level since Jan. 3 when a flash crash in the foreign exchange markets rocked major currencies.

Barring that level, the currency was at its weakest in three years and down 0.2% on the day.

The weak data gave further impetus to Aussie bears to add to their negative bets with net outstanding short positions still below 2019 highs of above $5.2 billion.

The Aussie is often seen as a proxy for Chinese growth because of Australia’s export-reliant economy and China being the country’s main destination for its commodities.

Domestic data added to the woes, with the pace of growth in Australian wages stagnating.

Neighbouring New Zealand saw its currency dip 0.1% to $0.6567.

The Chinese yuan itself was slightly improved on the day at 6.8993 per U.S. dollar, but still close to a five-month low hit on Tuesday.


Company: cnbc, Activity: cnbc, Date: 2019-05-15
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Aussie dollar rallies as central bank holds rates, cut still on the menu

The Australian dollar rallied on Tuesday after the country’s central bank defied pressure for an immediate cut in interest rates, though it left the door wide open for an easing should the jobs market not stay strong. The Reserve Bank of Australia (RBA) ended its monthly policy meeting by keeping rates unchanged at 1.5 percent, where they have been since mid-2016. If the RBA does eventually cut, markets will automatically assume it will go again, as the bank has never moved rates just once and s


The Australian dollar rallied on Tuesday after the country’s central bank defied pressure for an immediate cut in interest rates, though it left the door wide open for an easing should the jobs market not stay strong. The Reserve Bank of Australia (RBA) ended its monthly policy meeting by keeping rates unchanged at 1.5 percent, where they have been since mid-2016. If the RBA does eventually cut, markets will automatically assume it will go again, as the bank has never moved rates just once and s
Aussie dollar rallies as central bank holds rates, cut still on the menu Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-07
Keywords: news, cnbc, companies, market, central, recent, cut, dollar, easing, meeting, rba, holds, menu, rates, bank, markets, rallies, aussie, inflation


Aussie dollar rallies as central bank holds rates, cut still on the menu

The Australian dollar rallied on Tuesday after the country’s central bank defied pressure for an immediate cut in interest rates, though it left the door wide open for an easing should the jobs market not stay strong.

The Aussie dollar popped up almost half a cent to $0.7042 on the decision, giving it a gain for the day of 0.7 percent. It faces tough resistance around $0.7070, however.

The Reserve Bank of Australia (RBA) ended its monthly policy meeting by keeping rates unchanged at 1.5 percent, where they have been since mid-2016.

There had been much speculation it would ease given recent weak inflation outcomes.

Yet the central bank set the conditions for an easing by noting that inflation was too low and unemployment would have to fall further to get it rising.

“The Board … recognized that there was still spare capacity in the economy and that a further improvement in the labour market was likely to be needed for inflation to be consistent with the target,” RBA Governor Philip Lowe said in a statement.

Investors reacted by lengthening the odds on a cut in the next couple of months, though it was fully priced for September.

“The Bank noted that it will be paying close attention to developments in the labour market at its upcoming meetings, so if the unemployment rate doesn’t fall any further, we suspect that the Bank will start to cut,” said Marcel Thieliant, a senior economist at Capital Economics.

Interbank futures had implied a 36 percent chance of a quarter-point cut this week, while 17 of 42 analysts polled by Reuters have tipped an easing with the rest on hold.

The July futures contract now implies a 52 percent probability of an easing, compared to 100 percent before the meeting. August shows a 90 percent chance of a cut.

Australian government bond futures surrendered some of their recent gains, with the three-year contract off 8.5 ticks at 98.685. The 10-year contract fell 5 ticks to 98.2000.

Yields on three-year bonds rose to 1.31 percent, having touched an all-time low of 1.23 percent on Monday.

If the RBA does eventually cut, markets will automatically assume it will go again, as the bank has never moved rates just once and stopped. It eased twice in 2016 and twice in 2015.

The case for more stimulus was underlined by data showing retail sales were surprisingly soft in the March quarter, falling 0.1 percent when adjusted for inflation.

That posed a downside risk to economic growth in the quarter and offset another strong reading on international trade.

Australia’s trade surplus for March beat expectations at A$4.9 billion ($3.43 billion) and set the seal on a record-breaking total of A$14.7 billion for the quarter.

The flood of cash might almost be enough to give the country a current account surplus, the first in modern history.

Across the Tasman Sea, the New Zealand dollar edged up to $0.6614, but was still close to recent lows of $0.6581.

Both it and the Aussie had taken a hit on Monday after U.S. President Donald Trump’s threats of more tariffs on China threatened to derail chances of a trade deal anytime soon and sent stock markets sliding.

The Reserve Bank of New Zealand (RBNZ) holds its policy meeting on Wednesday and again markets are unsure if it will cut rates or hang on for a while longer.


Company: cnbc, Activity: cnbc, Date: 2019-05-07
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Sell the Aussie and Kiwi dollar, buy the yuan, says ANZ

Investors should sell the Australian dollar and New Zealand dollar, and put their money in the Chinese yuan and the Singapore dollar instead, according to the Head of Asia Research at ANZ bank, Khoon Goh. “The trade we’ve been recommending is to short the Australian dollar against the Singapore dollar, and to short the New Zealand dollar against the yuan,” Goh told CNBC on Friday. The Kiwi dollar was hit as a result on Wednesday, dropping 1.6 percent to below $0.68, while the Australian dollar w


Investors should sell the Australian dollar and New Zealand dollar, and put their money in the Chinese yuan and the Singapore dollar instead, according to the Head of Asia Research at ANZ bank, Khoon Goh. “The trade we’ve been recommending is to short the Australian dollar against the Singapore dollar, and to short the New Zealand dollar against the yuan,” Goh told CNBC on Friday. The Kiwi dollar was hit as a result on Wednesday, dropping 1.6 percent to below $0.68, while the Australian dollar w
Sell the Aussie and Kiwi dollar, buy the yuan, says ANZ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-29  Authors: weizhen tan, angelo nz, getty images
Keywords: news, cnbc, companies, buy, dollar, zealand, kiwi, sell, chinese, trading, value, anz, view, aussie, yuan, goh, singapore, australian


Sell the Aussie and Kiwi dollar, buy the yuan, says ANZ

Investors should sell the Australian dollar and New Zealand dollar, and put their money in the Chinese yuan and the Singapore dollar instead, according to the Head of Asia Research at ANZ bank, Khoon Goh.

“The trade we’ve been recommending is to short the Australian dollar against the Singapore dollar, and to short the New Zealand dollar against the yuan,” Goh told CNBC on Friday.

Shorting is a trading strategy that involves selling a borrowed stock or currency, with a view that it will drop in value, and can be bought back later at a lower price.

“I think that provides a good mix of play into the dovishness of the antipodean central banks and also the resilience of the Asian currencies,” Goh said, referring to the central banks in Australia and New Zealand.

This week, the Reserve Bank of New Zealand shocked investors when it announced its next move in interest rates was more likely to be a cut. The Kiwi dollar was hit as a result on Wednesday, dropping 1.6 percent to below $0.68, while the Australian dollar weakened half a percent to $0.71.

The Australian dollar has also been hit hard this year, pummeled by twin concerns of its own economy and that of China — it’s largest trading partner.

While Goh is expecting both those currencies to fall in value, he was a little more positive on the Australian dollar, saying that there was “further scope for the Aussie to outperform the Kiwi.”

Comparatively, Goh said he was “fairly optimistic about the Chinese yuan.”

“We’re expecting the yuan to appreciate over the course of this year, largely on the back of our view that Chinese growth will start to stabilize in the second quarter as it responds to the various stimulus measures,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-03-29  Authors: weizhen tan, angelo nz, getty images
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Aussie dollar falls on reported coal ban from China — but analysts see limited impact

The Australian dollar tumbled from levels above $0.7200 to below $0.7100 following reports that China banned coal imports from the country at a major port. Reuters reported on Thursday that customs at the Chinese port of Dalian has banned imported Australian coal since February, and will “cap overall coal imports from all sources to the end of 2019 at 12 million tonnes.” It also said that major ports elsewhere in China prolonged clearing times for Australian coal to at least 40 days. He added th


The Australian dollar tumbled from levels above $0.7200 to below $0.7100 following reports that China banned coal imports from the country at a major port. Reuters reported on Thursday that customs at the Chinese port of Dalian has banned imported Australian coal since February, and will “cap overall coal imports from all sources to the end of 2019 at 12 million tonnes.” It also said that major ports elsewhere in China prolonged clearing times for Australian coal to at least 40 days. He added th
Aussie dollar falls on reported coal ban from China — but analysts see limited impact Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: saheli roy choudhury, carla gottgens, bloomberg, getty images, -vivek dhar, national australia bank
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Aussie dollar falls on reported coal ban from China — but analysts see limited impact

The Australian dollar tumbled from levels above $0.7200 to below $0.7100 following reports that China banned coal imports from the country at a major port.

Reuters reported on Thursday that customs at the Chinese port of Dalian has banned imported Australian coal since February, and will “cap overall coal imports from all sources to the end of 2019 at 12 million tonnes.” It also said that major ports elsewhere in China prolonged clearing times for Australian coal to at least 40 days.

On Friday afternoon, the Australian dollar eked out slight gains to trade at $0.7101 at 2:55 p.m. HK/SIN, up from an earlier low of $0.7081. Local coal stocks mostly sold off. Shares of BHP fell 0.42 percent, Whitehaven retraced losses to gain 0.66 percent, Yancoal declined 2.8 percent and New Hope Group tumbled 3.55 percent.

Market speculation suggests Thursday’s report may be a reflection of strains in the political and trade relationship between Australia and China in recent times, Ivan Colhoun, chief economist for markets at the National Australia Bank, said in a note. He added that the reported ban would affect a relatively small portion of the country’s coal exports.

Last year, Australia banned Chinese telecommunication companies Huawei and ZTE from selling 5G technology equipment in the country, citing national security concerns. More recently, Australia rescinded the visa of a prominent Chinese businessman.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: saheli roy choudhury, carla gottgens, bloomberg, getty images, -vivek dhar, national australia bank
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Dollar gains as growth worry sparks flight to safety; Aussie weakens

The dollar held near a two-week high on Friday, as demand for safe-haven assets rose on uncertainties about the path of U.S.-China trade negotiations and broader worries about slowing global growth. “The dollar is being supported by worries over global growth and external factors,” said Sim Moh Siong, currency strategist at Bank of Singapore. “Markets are waiting to see what policy measures can stabilise growth worldwide…until then, it’s hard to see the dollar weakening.” The dollar index, a g


The dollar held near a two-week high on Friday, as demand for safe-haven assets rose on uncertainties about the path of U.S.-China trade negotiations and broader worries about slowing global growth. “The dollar is being supported by worries over global growth and external factors,” said Sim Moh Siong, currency strategist at Bank of Singapore. “Markets are waiting to see what policy measures can stabilise growth worldwide…until then, it’s hard to see the dollar weakening.” The dollar index, a g
Dollar gains as growth worry sparks flight to safety; Aussie weakens Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-08  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, safety, policy, index, global, weakens, bank, worry, sparks, growth, aussie, gains, flight, versus, trade, euro, european, dollar


Dollar gains as growth worry sparks flight to safety; Aussie weakens

The dollar held near a two-week high on Friday, as demand for safe-haven assets rose on uncertainties about the path of U.S.-China trade negotiations and broader worries about slowing global growth.

Such concerns were brought to the fore on Thursday after the European Commission sharply cut its forecasts for euro zone economic growth this year and next on expectations the bloc’s largest countries will be held back by global trade tensions and domestic challenges.

Investors’ anxieties about the global economy were also compounded by comments from U.S. President Donald Trump, who said he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline to achieve a trade deal.

“The dollar is being supported by worries over global growth and external factors,” said Sim Moh Siong, currency strategist at Bank of Singapore.

“Markets are waiting to see what policy measures can stabilise growth worldwide…until then, it’s hard to see the dollar weakening.”

The dollar index, a gauge of its value versus six major peers was up by around 0.1 percent at 96.59, sitting just shy of its two-week high.

The index has gained for six straight sessions in a row. This was mainly due to a weaker euro, which has around 58 percent weightage in the index, and came despite the Federal Reserve’s dovish shift on interest rates last week.

The Aussie dollar fell 0.3 percent to $0.7076 in Asian trade as the Reserve Bank of Australia cut its growth forecasts.

The Aussie has shed 2.4 percent of its value so far this week after the central bank signalled a shift from its long-standing tightening bias earlier this week.

But some analysts see limited downside for the Aussie.

“Aussie dollar should find technical support at $0.70 versus the dollar..quite a lot of bad news is priced in already and rising iron-ore prices should also be supportive,” Bank of Singapore’s Sim added.

The euro was marginally lower at $1.1338, on track to post its fifth straight day of losses. The single currency has been stumbling due to weaker-than-expected growth data out of the euro zone and expectations that the European Central Bank will keep monetary policy accommodative this year.

Philip Wee, currency strategist at DBS, thinks it is likely the euro will depreciate below $1.10 this year on Europe’s relatively weaker growth and inflation outlook against that of the United States.

The yen was steady at 109.74. Analysts think Japanese demand for foreign bonds has supported dollar/yen. The greenback gained around 0.8 percent versus the yen over the last week.

Sterling was marginally lower at $1.2950. Traders expect the British pound to remain volatile in the near term due to the uncertainty surrounding Brexit.

The United Kingdom is currently on course to leave the European Union on March 29 without a deal unless British Prime Minister Theresa May can convince the bloc to reopen the divorce agreement she reached in November.

The greenback was 0.1 percent higher versus the Canadian dollar at C$1.3319, on track to post its largest percentage gain since mid-June. Canada is a major producer of commodities, including oil, and the loonie has been under pressure due to falling energy prices.

The Bank of Canada said in January that low oil prices and a weak housing market hurt the economy in the fourth quarter of 2018 and would continue to drag on growth in the first quarter of this year. Traders expect the central bank to keep rates steady at its next policy meeting in March.


Company: cnbc, Activity: cnbc, Date: 2019-02-08  Authors: matt cardy, getty images
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Aussie under pressure after RBA’s dovish shift, yen firmer

In early trade, the Aussie dollar was marginally lower at $0.7103, having lost 1.8 percent in the previous session, its largest percentage decline in more than a year. “We have a clear trading range for the Aussie dollar. The shift in the RBA’s stance will likely make the Aussie test the $0.70 level versus the dollar,” added Michael McCarthy, chief markets strategist at CMC Markets. On Wednesday, the kiwi tracked the Aussie dollar’s fall, losing 1.72 percent, its steepest percentage decline sinc


In early trade, the Aussie dollar was marginally lower at $0.7103, having lost 1.8 percent in the previous session, its largest percentage decline in more than a year. “We have a clear trading range for the Aussie dollar. The shift in the RBA’s stance will likely make the Aussie test the $0.70 level versus the dollar,” added Michael McCarthy, chief markets strategist at CMC Markets. On Wednesday, the kiwi tracked the Aussie dollar’s fall, losing 1.72 percent, its steepest percentage decline sinc
Aussie under pressure after RBA’s dovish shift, yen firmer Cached Page below :
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Aussie under pressure after RBA's dovish shift, yen firmer

The Australian dollar remained near a two-week low on Thursday, as investors wagered that interest rates would most likely be cut this year due to mounting growth risks at home and abroad.

Australia’s central bank on Wednesday opened the door to a possible rate cut as it acknowledged growing economic risks in a remarkable shift from its long-standing tightening bias that sent the local dollar sliding.

In early trade, the Aussie dollar was marginally lower at $0.7103, having lost 1.8 percent in the previous session, its largest percentage decline in more than a year.

“We have a clear trading range for the Aussie dollar. The shift in the RBA’s stance will likely make the Aussie test the $0.70 level versus the dollar,” added Michael McCarthy, chief markets strategist at CMC Markets.

The New Zealand dollar was flat at $0.6765, after falling 0.1 percent earlier in the session after weaker-than-expected unemployment data on Thursday. On Wednesday, the kiwi tracked the Aussie dollar’s fall, losing 1.72 percent, its steepest percentage decline since Aug. 9, 2018.

The yen was steady versus the greenback at 109.91. The dollar has gained around one percent versus the Japanese currency so far this month as global risk sentiment improved leading to a modest rally in global equities.

The dollar index, a gauge of its value versus six major peers was steady at 96.35, hovering close to its two-week high in early Asian trade.

The dollar index has gained for three consecutive sessions, mainly thanks to a weaker euro, which constitutes around 58 percent of the index.

The single currency was flat at $1.1364, having lost 0.45 percent of its value on Wednesday. The euro has lost around 1.3 percent over the last week as investors bet that the European Central Bank will keep monetary policy accommodative due to weaker-than-expected growth and low inflation in the common area.

Elsewhere, sterling was marginally higher at $1.2930. The British pound has weakened by 1.3 percent in February due to Brexit woes. The United Kingdom is currently on course to leave the European Union on March 29 without a deal unless British Prime Minister Theresa May can convince the bloc to reopen the divorce agreement she reached in November and then sell it to skeptical British lawmakers.

The Bank of England is scheduled to meet later on Thursday and is widely expected to keep interest rates unchanged.

“The BoE won’t even consider changing interest rates until the terms to leaving the EU become clear,” said Kathy Lien, managing director of currency strategy at BK Asset Management.

“BoE Governor Mark Carney will reiterate his warning about the risks of a disorderly Brexit and reassure investors that they are ready to increase stimulus if it causes a major disruption in the markets,” added Lien.


Company: cnbc, Activity: cnbc, Date: 2019-02-07  Authors: istock, getty images
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Greenback firm on US jobs data; Aussie dollar weakens

Data on Friday showed that the U.S. economy created 304,000 jobs in January, the highest in 11 months, and above street estimates. The greenback was marginally higher versus the yen at 109.53, following its largest percentage gain in almost a month during Friday’s U.S. session. Despite the strong labour market, the U.S. central bank is widely expected to keep rates steady this year thanks to heightened worries over global growth, especially in China. However, most analysts do not see much upside


Data on Friday showed that the U.S. economy created 304,000 jobs in January, the highest in 11 months, and above street estimates. The greenback was marginally higher versus the yen at 109.53, following its largest percentage gain in almost a month during Friday’s U.S. session. Despite the strong labour market, the U.S. central bank is widely expected to keep rates steady this year thanks to heightened worries over global growth, especially in China. However, most analysts do not see much upside
Greenback firm on US jobs data; Aussie dollar weakens Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: matt cardy, getty images
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Greenback firm on US jobs data; Aussie dollar weakens

The dollar hovered near a one-week high against the yen on Monday, buoyed by stronger-than-expected U.S. jobs and factory data, although the Federal Reserve’s cautious policy outlook and thinned holiday trade in Asia are likely to cap further gains.

Data on Friday showed that the U.S. economy created 304,000 jobs in January, the highest in 11 months, and above street estimates.

The greenback was marginally higher versus the yen at 109.53, following its largest percentage gain in almost a month during Friday’s U.S. session.

“The non-farm payroll was a strong number and is supporting the dollar. A dovish Fed had hit the dollar/yen but rising stocks and solid U.S. data have led to this bounce back,” said Nick Twidale, chief operating officer at Rakuten Securities.

The solid jobs report also allayed concerns of the slowdown in the U.S. economy, leading traders to trim expectations the Fed would need to cut interest rates to support the economy later this year.

The benchmark 10-year U.S. Treasury yield was 2.69 percent, rebounding from a four-week low of 2.619 percent earlier last week. Rising U.S. yields are most likely to support the dollar in the near term.

In broader moves, currency markets stayed in tight ranges in early Asian trade, with euro trading flat at $1.1455.

China’s financial markets are closed all week for the Lunar New Year holiday. Other Asian markets are also closed for parts of the week, keeping wider market activity subdued.

The Australian dollar was lower by 0.2 percent at $0.7234 while the kiwi was marginally higher at $0.6901. The Aussie was hit after the release of weaker-than-expected building approvals data.

Traders are now focusing on the Reserve Bank of Australia’s monetary policy meeting on Tuesday, where it is widely expected to keep the cash rate steady. Weakening economic data has led analysts to feel the RBA would most likely keep monetary policy accommodative.

Futures markets imply around a 50-50 chance the RBA will cut the 1.5 percent cash rate by the end of the year, despite its repeated assertions that the next move would be up.

“Market expectations have emerged for a rate cut as opposed to the RBA’s view that the next move in rates is an increase. The RBA will also need to temper its optimistic economic outlook” in Tuesday’s monetary policy statement, said Philip Wee, currency strategist at DBS, in a note.

The dollar index, a gauge of its value versus six major peers, was steady at 95.58.

Despite the strong labour market, the U.S. central bank is widely expected to keep rates steady this year thanks to heightened worries over global growth, especially in China. Growth in the euro area has also been weaker-than-expected with Europe’s main economic engines, France and Germany, slowing down.

Rising U.S. interest rates were the main driver of the greenback’s outperformance last year. However, most analysts do not see much upside in the dollar this year as U.S. borrowing costs are widely expected to remain steady.

Elsewhere, sterling was flat at $1.3083 in early Asian trade. Traders expect the British pound to remain volatile as Brexit uncertainty remains high. The Bank of England is scheduled to meet later this week and widely expected to keep interest rates steady.


Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: matt cardy, getty images
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Aussie dollar slides on dismal China data; yen steadies

The Australian dollar fell versus the greenback on Friday after a private survey showed factory activity in China shrank by the most in almost three years in January. The Australian dollar, often considered a barometer for global risk appetite, fell 0.4 percent to $0.7246. The yen was steady at 108.8 against the dollar after hitting a two-week high in the previous session. The dollar is widely expected to weaken this year as the Federal Reserve turns more cautious about further rate increases. A


The Australian dollar fell versus the greenback on Friday after a private survey showed factory activity in China shrank by the most in almost three years in January. The Australian dollar, often considered a barometer for global risk appetite, fell 0.4 percent to $0.7246. The yen was steady at 108.8 against the dollar after hitting a two-week high in the previous session. The dollar is widely expected to weaken this year as the Federal Reserve turns more cautious about further rate increases. A
Aussie dollar slides on dismal China data; yen steadies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-01  Authors: matt cardy, getty images
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Aussie dollar slides on dismal China data; yen steadies

The Australian dollar fell versus the greenback on Friday after a private survey showed factory activity in China shrank by the most in almost three years in January.

The Australian dollar, often considered a barometer for global risk appetite, fell 0.4 percent to $0.7246. The kiwi was at $0.6907, down 0.2 percent versus the greenback.

China’s gloomy factory readings have brought global growth worries to the fore again, which is likely to benefit safe-haven currencies such as the Japanese yen.

“Dollar/yen is expected to remain weak given a dovish Federal Reserve but we can expect a bigger move down if there is a return of risk-off sentiment,” said Sim Moh Siong, currency strategist at Bank of Singapore.

The yen was steady at 108.8 against the dollar after hitting a two-week high in the previous session.

However, broader risk sentiment still remained fairly strong after U.S. President Donald Trump said on Thursday he would meet with Chinese President Xi Jinping soon to try and seal a comprehensive trade deal as the top U.S. negotiator reported “substantial progress” in two days of high-level talks.

The dollar index, a gauge of its value versus six major peers, was steady at 95.60. The index is set to end the week in the red, after losing 0.6 percent of its value last week.

The dollar is widely expected to weaken this year as the Federal Reserve turns more cautious about further rate increases.

On Wednesday, the U.S. central bank held interest rates steady as expected but discarded pledges of “further gradual increases” in interest rates, and said it would be “patient” before making any further moves.

Trade talks between the United States and China could also have an impact on the dollar, which has acted as a safe-haven in times of uncertainty.

President Trump said he wanted a “very big” trade deal with China, but he signaled there could be delays if talks fail to meet his goals of opening the Chinese economy broadly to U.S. industry and agriculture.

Analysts say a comprehensive trade deal between the world’s two largest economies would most likely boost risk sentiment and lead to a weaker dollar.

Markets are now focusing on U.S. jobs data later on Friday. Analysts note that any weakness in the labor market and a fall in wage inflation would only reinforce the dovish outlook for the dollar this year.

The euro was flat at $1.1446 after having fallen 0.3 percent in the last session. The single currency has not managed to gain despite broader dollar weakness as growth and inflation in the euro zone remain weaker than expected.

Indeed, Jens Weidmann, the Bundesbank president and a member of the European Central Bank Governing Council, painted a bleak picture of the German economy on Thursday, saying the slump in Europe’s largest economy will last longer than initially thought.

Sterling, which is grappling with troubles of its own on uncertainty over a deal to avoid a chaotic British exit from the European Union, was flat at $1.3109. Analysts expect the British pound to remain volatile in the coming weeks.

— CNBC contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-02-01  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, trade, yen, versus, data, aussie, risk, deal, remain, expected, dollar, steadies, china, sentiment, dismal, slides, steady, president


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Dollar hampered by global growth, trade war worries; Aussie slips

The dollar was hamstrung versus its rivals on Thursday, restrained by concerns over global growth, the U.S. government shutdown and a yet-unresolved U.S.-Sino trade dispute. “Trade tensions are the most dominant factor for investor sentiment right now and will drive market flows,” said Nick Twidale, chief operating officer at Rakuten Securities. Twidale added that investor risk appetite will only improve once concerns over the partial U.S. government shutdown and trade tensions fade. Global grow


The dollar was hamstrung versus its rivals on Thursday, restrained by concerns over global growth, the U.S. government shutdown and a yet-unresolved U.S.-Sino trade dispute. “Trade tensions are the most dominant factor for investor sentiment right now and will drive market flows,” said Nick Twidale, chief operating officer at Rakuten Securities. Twidale added that investor risk appetite will only improve once concerns over the partial U.S. government shutdown and trade tensions fade. Global grow
Dollar hampered by global growth, trade war worries; Aussie slips Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-24  Authors: dan kitwood, getty images
Keywords: news, cnbc, companies, war, traders, trade, global, hampered, aussie, investor, worries, growth, versus, slips, dollar, tensions, policy, sterling


Dollar hampered by global growth, trade war worries; Aussie slips

The dollar was hamstrung versus its rivals on Thursday, restrained by concerns over global growth, the U.S. government shutdown and a yet-unresolved U.S.-Sino trade dispute.

“Trade tensions are the most dominant factor for investor sentiment right now and will drive market flows,” said Nick Twidale, chief operating officer at Rakuten Securities.

Twidale added that investor risk appetite will only improve once concerns over the partial U.S. government shutdown and trade tensions fade.

The Aussie dollar was a big mover in the Asian session, trading 0.22 percent lower at $0.7126 after National Australia Bank said it would raise mortgage rates by 12 to 16 basis points. Earlier, the Aussie was in positive terrain on the back of solid jobs data.

The partial U.S. government shutdown, now in its 34th day has hurt investor sentiment. U.S. Republican Senate Majority Leader Mitch McConnell said he planned to hold a vote on Thursday on a Democratic proposal that would fund the government for three weeks.

Global growth concerns have also rattled investor appetite for risk. On Monday, the International Monetary Fund (IMF) cut its 2019 and 2020 global growth forecasts, citing a bigger-than-expected slowdown in China and the eurozone, and said failure to resolve trade tensions could further destabilize a slowing global economy.

In Asian trading, the yen was marginally higher at 109.51, after weakening 0.2 percent versus the greenback in the previous session.

On Wednesday, the Bank of Japan kept its policy unchanged. The BOJ cut its inflation forecasts and warned of growing risks to the economy from trade protectionism and slowing global demand.

The dollar index, a gauge of its value versus six major peers, was steady at 96.06.

Markets are bearish on the outlook for the dollar this year. Traders in interest rate futures are wagering that the Federal Reserve will stand pat on rates in 2019 in the face of growth risks both at home and globally.

All eyes will be on the euro as investors await the European Central Bank’s monetary policy announcement later on Thursday where it is all but certain to keep policy unchanged.

The single currency was marginally higher at $1.1383. The euro has lost around 1.6 percent of its value over the last two weeks as traders expect the ECB to remain dovish and keep monetary policy accommodative for an extended period of time. Low inflation as well as weaker-than-expected economic activity in Germany and France, however, may lead ECB President Mario Draghi to point towards a potentially longer lasting slowdown.

“If the central bank lowers its growth or inflation forecasts and Draghi focuses on weaker growth, we could see EUR/USD fall to $1.12 easily,” said Kathy Lien, managing director of currency strategy at BK Asset Management.

Elsewhere, sterling traded marginally higher at $1.3075, hovering near highs last seen in mid-November in a sign traders expect Britain to avoid a chaotic exit from the European Union.

Since Prime Minister Theresa May’s divorce deal with the EU was rejected by lawmakers last week in the biggest defeat in modern British history, lawmakers have been trying to plot a course out of the crisis, yet no option has the majority support of parliament.

Some analysts expect limited upside for sterling. Philip Wee, currency strategist at DBS says that most of the gains in the pound are due to the unwinding of short positions. He sees sterling capped in the range of $1.3170-1.3240.


Company: cnbc, Activity: cnbc, Date: 2019-01-24  Authors: dan kitwood, getty images
Keywords: news, cnbc, companies, war, traders, trade, global, hampered, aussie, investor, worries, growth, versus, slips, dollar, tensions, policy, sterling


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Yen weakens in Asian trade; Aussie, kiwi dollar strengthen

The safe-haven yen fell versus its peers on Wednesday as risk appetite marginally improved in Asian trading, though concerns over slowing global growth and U.S.-Sino trade tensions are likely to cap gains in riskier assets. Against the Aussie dollar, it fell by 0.5 percent. “Nervousness around global growth and trade tensions is certainly a factor driving the markets right now,” said Michael McCarthy, chief markets strategist at CMC Markets. On Monday, the International Monetary Fund (IMF) cut i


The safe-haven yen fell versus its peers on Wednesday as risk appetite marginally improved in Asian trading, though concerns over slowing global growth and U.S.-Sino trade tensions are likely to cap gains in riskier assets. Against the Aussie dollar, it fell by 0.5 percent. “Nervousness around global growth and trade tensions is certainly a factor driving the markets right now,” said Michael McCarthy, chief markets strategist at CMC Markets. On Monday, the International Monetary Fund (IMF) cut i
Yen weakens in Asian trade; Aussie, kiwi dollar strengthen Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-23  Authors: torsakarin, istock, getty images
Keywords: news, cnbc, companies, traders, growth, versus, trade, yen, aussie, tensions, brexit, kiwi, global, markets, strengthen, slowing, weakens, dollar, asian


Yen weakens in Asian trade; Aussie, kiwi dollar strengthen

The safe-haven yen fell versus its peers on Wednesday as risk appetite marginally improved in Asian trading, though concerns over slowing global growth and U.S.-Sino trade tensions are likely to cap gains in riskier assets.

The yen weakened by 0.25 percent versus the greenback to 109.62. Against the Aussie dollar, it fell by 0.5 percent.

As expected, the Bank of Japan kept monetary policy unchanged and trimmed its inflation forecast, with a larger-than-expected drop in December export data earlier in the day underlining the need for continued support for the trade-reliant economy.

The Australian dollar gained 0.2 percent versus the greenback to $0.7137.

Currency markets have been whipsawed over recent weeks as traders tried to come to terms with a range of issues from Brexit to slowing global growth and the outlook for major central banks.

“Nervousness around global growth and trade tensions is certainly a factor driving the markets right now,” said Michael McCarthy, chief markets strategist at CMC Markets.

“Markets have also seen a spectacular run since late December..so the recent correction in equities can also be due to positioning.”

On Monday, the International Monetary Fund (IMF) cut its 2019 and 2020 global growth forecasts, citing a bigger-than-expected slowdown in China and the eurozone, and said failure to resolve trade tensions could further destabilize a slowing global economy.

Growth in China last year was the slowest since 1990 and is set to weaken further this year before stimulus measures start to kick in.

Investors are hoping for a breakthrough in U.S.-Sino trade talks, with the tariff dispute between the world’s largest economies already rippling through financial markets and global demand.

A report by the Financial Times that the United States had rejected China’s offer for preparatory trade talks dampened risk sentiment overnight, though it was later denied by a White House adviser.

The dollar index was marginally higher at 96.32. Traders in interest rate futures are wagering that the Federal Reserve will stand pat on rates in 2019 in the face of risks both at home and globally.

The dollar rally last year was mainly driven by the Fed’s four rate hikes, so traders expect a pause in the tightening cycle to cap the U.S. currency.

The euro was steady at $1.1367, while sterling edged up marginally to $1.2961, having gaining 0.5 percent in the previous session.

Data on Tuesday showed that Britain’s labor market remained robust despite an economic slowdown ahead of Brexit. Average weekly earnings, including bonuses, rose by 3.4 percent on the year, the biggest rise since mid-2008.

Sterling is sitting close to its highs last seen in mid-November, a sign that traders expect Britain to avoid a chaotic exit from the European Union despite the looming March 29 Brexit date.

Since Prime Minister Theresa May’s divorce deal with the EU was rejected by lawmakers last week in the biggest defeat in modern British history, lawmakers have been trying to plot a course out of the crisis, yet no option has the majority support of parliament.

“The market is now completely discounting the prospect of a hard Brexit, though the political risk still remains in play and volatility is sure to ratchet higher if no clear path is visible to the market,” said Kathy Lien, managing director of currency strategy at BK Asset Management,

The New Zealand dollar gained 0.5 percent in early Asian trade to $0.6780 after data showed that inflation edged higher in the fourth quarter and reducing the possibility of an interest rate cut.


Company: cnbc, Activity: cnbc, Date: 2019-01-23  Authors: torsakarin, istock, getty images
Keywords: news, cnbc, companies, traders, growth, versus, trade, yen, aussie, tensions, brexit, kiwi, global, markets, strengthen, slowing, weakens, dollar, asian


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