The Australian dollar stayed on the defensive on Tuesday as investors weighed the risk of further policy easing, including unconventional stimulus steps, while the New Zealand dollar drew support from upbeat local data.
The Aussie was stuck at $0.6776 having come within a whisker of breaching major support at the November low of $0.6770.
The kiwi dollar again outperformed by holding at $0.6417, having found solid support at $0.6395. The kiwi got a boost from data showing retail sales volumes surged a surprisingly strong 1.6% in the third quarter, thanks in part to spending on electronic gadgets.
Such a turn could lessen the need for another cut in interest rates from the Reserve Bank of New Zealand (RBNZ), with market now implying only a 26% chance of a move at the next policy meeting on Feb. 12.
The risk was underlined by RBA Deputy Governor Guy Debelle on Tuesday, who warned that wage growth had become entrenched in a low 2-3% range and unemployment would need to fall further to get it up.
Investors are wagering it will take further stimulus to achieve this goal and are fully priced for a rate cut to 0.5% by the middle of next year.
14 Jul 2020 09:16 AM
The dollar was marginally higher in narrow ranges against most currencies on Tuesday
14 Jul 2020 08:47 AM
The Indian rupee is expected to drop against the dollar tracking losses in regional equities
13 Jul 2020 04:57 PM
Indian shares ended higher on Monday, led by a rally in Reliance Industries, ahead of June's inflation data which investors bet would lead to further interest rate cuts by the central bank.
13 Jul 2020 02:43 PM
The Indian rupee was little changed against the greenback, amid focus on decline in the dollar index
13 Jul 2020 11:45 AM
Indian shares climbed on Monday, as investors bet June inflation data later in the day would lead to further interest rate cuts by the country's central bank, while Reliance Industries gained for a third session.
13 Jul 2020 11:15 AM
The yuan hovered around the key 7 per dollar threshold on Monday, ahead of economic data this week