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Currency Market Analysis

Jun 20, 2019 | Currency Market Analysis

Global Themes

Aussie gives up post Fed gains as global worries weigh

The AUD gave up early gains overnight after the key Federal Reserve meeting held overnight signaled the US central bank is becoming increasingly concerned about the global economy.

The Fed decided to keep interest rates on hold at last night’s meeting and said it would "act as appropriate" to sustain economic growth – a sign the central bank might cut rates later in the year.

US shares climbed and bond yields fell.

However, the AUD also fell, in a possible sign of increasing gloom for the globe’s – and Australia’s – economic prospects.

Weaker

At the end of the session’s trading, the AUDUSD ended broadly flat.

The Aussie was weaker in most other markets with the largest losses in the AUDGBP and AUDCAD.

NZ GDP

Today’s focus shifts to New Zealand with  March-quarter New Zealand GDP numbers are due.

The market is looking for 2.4% in annual terms.

Central banks will continue to drive the action with the Bank of Japan and Bank of England both meeting today.

By Steven Dooley, Currency Strategist APAC


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