Breaking News

Australia, NZ dollars firm as Sino-U.S. talks extended

ForexJan 08, 2019 10:55PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Illustration photo of a New Zealand Dollar note

By Wayne Cole

SYDNEY/WELLINGTON (Reuters) - The Australian dollar rose to a three-week high on Wednesday as speculation swirled that Beijing and Washington might be making progress in resolving their trade dispute, lifting Asian share markets and risk sentiment.

The talk helped offset disappointing domestic data on home building which suggested the sector would be a drag on the economy in 2019 after several years of strength.

The Aussie dollar still edged up 0.3 percent to $0.7162, snapping resistance at $0.7150 and on track for the next chart barrier at $0.7200.

The New Zealand dollar firmed 0.4 percent to $0.6752, taking it back toward Monday's top of $0.6766.

The United States and China extended their latest trade talks into Wednesday amid signs of progress on issues including purchases of U.S. farm and energy commodities and increased access to China's markets.

There were also report President Donald Trump was keen to get a deal done soon in the hope it would help Wall Street recoup some of the steep losses suffered in recent months.

The optimism outweighed data showing approvals to build new homes in Australia dived a surprisingly sharp 9.1 percent in November to hit the lowest since mid-2013.

"It's a sign that builders, unsurprisingly, are less keen to add to the residential pipeline in an environment of falling prices in Sydney and Melbourne," said NAB economist Kaixin Owyong.

"These data are consistent with business conditions in the construction sector declining from late 2017 peaks."

A more positive note was struck by figures on job vacancies which showed an increase of 1.3 percent to a record high in the three months to November.

Over in New Zealand, a survey from ANZ showed job advertisements fell 3.5 percent in December, from the previous month, pointing to some cooling in what has been a very strong labour market.

For bonds, the improvement in risk sentiment nudged prices lower with Australian three-year bond futures off 1.5 ticks at 98.150. The 10-year contract eased 3.5 ticks to 97.6600.

New Zealand government bonds <0#NZTSY=> were little changed, with 10-year yields (NZ10YT=RR) holding at 2.42 percent.

Australia, NZ dollars firm as Sino-U.S. talks extended

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email