Edit Content

Market Update 29/10/2024

Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX. If you have any questions or would like anything further explained, please don’t hesitate to reach out to your account manager or email info@cafx.com

Equity markets started the global trading week stronger, with a busy schedule of corporate earnings ahead. The S&P 500 rose 0.5%, while the Euro Stoxx 50 and FTSE 100 closed up 0.5% and 0.4%, respectively. Meanwhile, the yield on the US 10-year bond increased by 4.2 bps to 4.28%.

The headline index in the Dallas Fed Manufacturing survey improved by 6pts to -3.0 in October vs consensus expectation of -9.2. The results were mixed, the production index reached its highest level in over to years, though the new orders remained negative, suggesting a slight drop in demand. Capacity utilization and shipments increased, with moderate upward pressure on prices and wages persisting.

Since the start of the long weekend, major market moves have included a sharp drop in oil prices after Israel’s limited strike against Iran concluded, a weaker JPY following Japan’s Lower House elections where the ruling coalition lost its majority, and continued momentum in the Trump trade with rising US Treasury yields, higher US equities and a generally stronger USD.

NZDUSD hit a new low of 0.5958 around 5:30 pm yesterday, then rebounded to an overnight high just below 0.6000, before easing back to around 0.5975. After some consolidation earlier this month, a clear downtrend channel is re-emerging. In the very short term, this suggests selling near 0.5990 and watching for a potential move down through 0.5960.

NZDAUD has risen to 0.9085. The AUD remains under pressure, helping keep NZDAUD relatively steady. Tomorrow’s Q3 CPI data from Australia will be closely watched. For now, there appears to be solid support around 0.9030 and resistance near 0.9100.

NZDJPY has remained notably steady throughout October, trading between 90.00 and 92.00, and has risen 0.7% to 91.72 from last week’s close of 91.60. USDJPY faced resistance just below 153.90 yesterday afternoon and is now at 153.30. In Japan, the ruling LDP party lost the most seats in Sunday’s Lower House elections, falling 18 seats short of a majority, even with coalition partner Komei’s seats. Prime Minister Ishiba, who called an early election after recently becoming LDP leader and PM, is still working to form a government, ushering in a period of uncertainty. Markets expect that any new government will likely implement a looser fiscal policy due to necessary concessions, which could also lead the BoJ to delay its policy normalization. However, if the yen weakens further, the BoJ may be compelled to act by December.

NZDGBP & NZDEUR are slightly down from last week’s close, now sitting at 0.4610 & 0.5530.

Today, NZ filled jobs data will be released at 10:45 am NZT, and later, attention will shift to the US JOLTS labor market report.

Here are the latest mid-market rates:

Currency Pair Mid-market rate
NZD/USD 0.5981
NZD/AUD 0.9084
NZD/JPY 91.70
NZD/CNY 4.2721
NZD/EUR 0.5531
NZD/GBP 0.4611
NZD/HKD 4.6483
NZD/SGD 0.7910

 

Chart of the Day 

Facebook
Twitter
LinkedIn