APAC Morning Update - 18/01/2021

The AUD opens at 0.7708, whilst the NZD opens at 0.7135
 

A pull back in the AUD and the NZD? The AUD almost breaks down to the lowest level since…2020. In terms of specific catalysts, there are not too many. Biden has announced a 1.9 Trillion dollar stimulus, which is probably about what the market was expecting, but this has failed to get the risk currencies excited. Sometimes when the market anticipates something so much, when it finally gets it, the result is a little flat. As we know the AUD and the NZD, and risk in general has had such a strong run, that a bit of profit taking is always inevitable.

 
Today we have a US holiday, Martin Luther King Day, so you can expect a fairly thin market. Chinese GDP is out today, and this is expected to corroborate Chinas recovery at a healthy 6.2%. Really though all eyes will be on Biden’s inauguration on Thursday AEST. Possible outcomes range from pretty quiet to riots on the street, so well worth keeping an eye on.

 
Global equity markets are off across the board: Dow -0.6%, S&P 500 -0.7%, FTSE -1.1%, DAX -1.4%, CAC -1.2%, Nikkei -0.6%, Shanghai +0.0%.

Gold prices are down 1.9%, currently trading at $1,829 an ounce. WTI Crude Oil prices are down 2.8% trading at $52.18 a barrel. 

NZDUSD 0.7135 -1.3%
NZDEUR 0.5903 -0.7%
NZDGBP 0.5250 -0.6%
NZDJPY 74.01 -1.3%
NZDAUD 0.9260 -0.2%
NZDCAD 0.9085 -0.5%
GBPNZD 1.9060 0.7%

AUDUSD 0.7708 -1.0%
AUDEUR 0.6377 -0.4%
AUDGBP 0.5670 -0.4%
AUDJPY 79.98 -1.0%
AUDNZD 1.0794 0.2%
GBPAUD 1.7620 0.3%