Money Dollar unwinds some gains against Aussie

20:32  21 april  2017
20:32  21 april  2017 Source:   MSN

Australia dollar sinks on sterling, NZ$ more buoyant

  Australia dollar sinks on sterling, NZ$ more buoyant <p>The Australian dollar nursed painful losses on the pound on Wednesday as markets wagered a snap election in the UK could lead to a more <g class="gr_ gr_5 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace" data-gr-id="5" id="5">favourable</g> outcome for investors from coming Brexit negotiations.</p>The Aussie was also pressured by fresh falls in iron ore, the country's single biggest export earner, as worries about a supply glut in China dragged prices to 13-week lows.

The New Zealand dollar unwound yesterday's gains against the Australian dollar but still ended the week higher, despite improving iron ore prices giving the Aussie a boost. The kiwi was trading at 92.97 Australian cents at 5pm from 93.70 cents yesterday and

The New Zealand dollar unwound Thursday's gains against the Australian dollar but still ended the week higher, despite improving iron ore prices giving the Aussie a boost.

Market pricing Friday continued to point to a rate hike next March, well ahead of the RBNZ's forecast mid-2019. © Getty Images Market pricing Friday continued to point to a rate hike next March, well ahead of the RBNZ's forecast mid-2019. The New Zealand dollar unwound Thursday's gains against the Australian dollar but still ended the week higher, despite improving iron ore prices giving the Aussie a boost.

The kiwi was trading at A92.97c at 5pm from 93.70c Thursday and 92.28c late Friday a week ago in New York.

Against the greenback, it fell over the week to US70.01c from 69.97c.

The kiwi gained strongly on Thursday against both the Aussie and the greenback on news that consumer prices rose at their fastest annual pace since the September 2011 quarter in the first three months of 2017.

Shares, euro, Aussie dollar gain on French election result

  Shares, euro, Aussie dollar gain on French election result <p>The Australian share market and <g class="gr_ gr_3 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep" data-gr-id="3" id="3">dollar</g> have been beneficiaries of Emmanuel Macron's victory in the first round of the French presidential election, as the centrist looks increasingly likely to win the run-off.</p>Mr Macron won the first round of voting with approximately 24 per cent of votes cast, while the leader of the anti-immigration and anti-European Union National Front Marine Le Pen came second with around 22 per cent.

The New Zealand dollar unwound yesterday's gains against the Australian dollar but still ended the week higher, despite improving iron ore prices giving the Aussie a boost. The kiwi was trading at 92.97 Australian cents at 5pm from 93.70 cents yesterday and

The New Zealand dollar unwound Thursday's gains against the Australian dollar but still ended the week higher, despite improving iron ore prices giving the Aussie a boost.

This solidified market expectations the central bank will lift rates sooner than it's forecasting.

Market pricing Friday continued to point to a rate hike next March, well ahead of the RBNZ's forecast mid-2019.

The kiwi opened weaker after Dallas Federal Reserve president Robert Kaplan affirmed his view that the US central bank will lift rates another two times this year, stoking demand for the greenback.

Mark Johnson, a senior foreign exchange dealer at OMF in Wellington, said iron ore "had a good bounce overnight, which gave the Aussie a lift and the bit of a rebound in the Aussie may have dragged us down a bit", although the kiwi was supported at A92.8c.

Both the Aussie and the kiwi will likely be pushed around by French presidential election news this weekend, in particular after a shooting on the Champs-Elysees boulevard, in which one policeman was killed.

Markets were cheered by polls that indicate centrist candidate Emmanuel Macron is set to come out on top in the first round of voting.

The kiwi slipped to 65.34 euro cents from 65.58 cents and fell to 54.72 British pence from 54.93 pence. The kiwi eased to 76.48 yen from 76.65 yen and fell to 4.8166 from 4.8439 yuan.

Inflation set to match RBA target .
Consumer prices in the March quarter are expected to have lifted 0.6 per cent on the back of rising costs for petrol and for fruits and vegetables.However, continuing softness in core inflation means the central bank will likely keep the cash rate steady for the rest of this year, economist say.

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