AUD and NZD Recovered After Reeling From Hawkish US Rates

Must Read

The recent US employment data seems hopeful that the US economy might slow down after months of job growth and tight labour conditions. The AUD and NZD are looking positive with this new data.

According to the newly released report, the US economy added 236,000 new nonfarm payroll jobs in March. Nevertheless, despite being lower than the six-month average of 334,000, its unemployment percentage dropped by 0.1 per cent in just a month.

Patrick Villanova, writer and editor for SmartAsset, noted that “while many believe a recession is imminent, a loosening labour market could lead the Federal Reserve to hit the brakes on the rate hikes designed to tame inflation. That could affect your financial plans, especially if you’re retired.”

The new nonfarm payroll reports influenced the AUD to increase by 0.4 per cent to $0.6668, a massive win from the previous night’s 0.5 per cent losses which was the lowest in over three weeks. The NZD was 0.2 per cent higher at $0.6231 after falling a full one per cent to $0.6195 the previous night.

The recent data released on Good Friday showed improvements as US employers continue to hire more robustly. This helped the USD index rise to its highest in a week. Experts believe this number will prompt the Fed to raise rates next month, with a 74 per cent likelihood. However, the two currencies must still be added to the home stretch. They are still awaiting the release of US inflation data on Wednesday.

According to Sean Callow, a currency strategist at Westpac, “AUD/USD has not traded outside the 0.6600 to 0.6800 range since March 15. In the week ahead, whether it breaks out of this range will likely depend on any return of equity volatility, Australia’s labour force data, and the US March inflation report.”


Please enter your comment!
Please enter your name here

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img