Australian dollar slips to 10-day low, bonds rally to end tough week
SYDNEY, June 28 (Reuters) -The Australian dollar fell to a 10-day low on Friday as markets pared the chance of a rate hike on dovish comments from a top central banker, while bonds got much needed relief to end a brutal week of sell-offs.
With the first U.S. presidential debate out of the way and evoking a muted market reaction so far, traders are looking ahead to the U.S. core personal consumption expenditures (PCE) price index due later on Friday, after inflation figures in both Canada and Australia surprised on the upside.
The Aussie AUD=D3 fell 0.3% to $0.6624, the lowest since June 18. It failed to gain much ground overnight even as the U.S. dollar eased slightly as Andrew Hauser, the Reserve Bank of Australia Deputy Governor, downplayed the impact of a hot inflation report for May.
It is headed for a weekly decline of 0.2%, although the U.S. PCE data is bound to whip up volatility later in the day. Support is now around $0.6580.
Late on Thursday, RBA's Hauser said it would be a bad mistake to set policy on the basis of one inflation number. The RBA will have the outcome of the full second quarter inflation report, an update on labour market and readings on consumer spending before its August meeting.
"An ugly June quarter CPI release together with strong labour market data could tip the balance and force a rate hike, but this is not our base case and is not supported by currently available information," said Luci Ellis, chief economist at Westpac.
Swaps are back to implying a 30% chance of a quarter-point rate hike in August, compared with a 42% a day ago. Still, the prospects of any rate cuts are gone for this year.
Bonds got some relief on Friday, after suffering the biggest two day declines earlier this week in more than a year.
Three-year government bond futures YTTc1 rose 5 ticks to 95.9, pulling away from seven-month lows. They, however, still fell 21 ticks for the week, the biggest weekly drop since April.
The kiwi NZD=D3 fell 0.2% to hit a fresh six-week low of $0.6068 on Friday and was testing the major support level of the 200-day moving average at $0.6069. It is set for a weekly decline of 0.8%.
Reporting by Stella Qiu; Editing by Muralikumar Anantharaman
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
