Australia Australia, New Zealand dollar bulls take a breather on poor economic news

07:26  06 august  2020
07:26  06 august  2020 Source:   reuters.com

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"In Australia , AUD (the Australian dollar ) soared despite weaker PMIs after Prime Minister Morrison said they are headed for a COVID safe economy ," she said. Purchasing Managers' Index (PMI) is an economic indicator of how well the manufacturing sector is performing. "The fact that these countries

English ( Australia ). The Bull Takes A Breather . By Dr. Duke Stock MarketsJun 25, 2017 02:00AM ET. When the Standard and Poors 500 Index (S&P 500) gapped open lower and plunged on May 17th, traders panicked, but the bulls came back strongly the very next day and drove the market to

a necklace with a dark background: New Zealand and Australia one dollar coins are seen in a picture illustration © Reuters/David Gray New Zealand and Australia one dollar coins are seen in a picture illustration

By Wayne Cole

SYDNEY (Reuters) - The Australian and New Zealand dollars backed away from multi-month highs on Thursday as some negative news at home provided speculators an excuse to take profits on recent generous gains.

The Aussie dollar edged down to $0.7190 , having touched an 18-month peak of $0.7241 overnight. Immediate support comes in around $0.7187 and $0.7173. The kiwi dollar held at $0.6632 , still short of its recent seven-month top of $0.6716. Support lies at $0.6590 and $0.6575.

Aussie sentiment took a knock when Australian Prime Minister Scott Morrison told a news conference the new lockdowns in Victoria state would cut around A$10-12 billion from national gross domestic product in the third quarter, or about 2.5 percentage points from growth.

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(Reuters) - Australian lenders deferred a further A billion (.47 billion) loans in June, the country's financial watchdog said on Tuesday, as borrowers struggled to service their debts in the wake of the coronavirus crisis. The total amount of loans deferred stood at A4 billion as at 30 June

www.investing.com/analysis/ bulls - taking - a - breather - on -crude-200147124. On Monday crude oil broker with a very important mid term resistance level and made a new high before testing this level again. Crude Oil 4 Hourly Chart. Bulls Taking A Breather On Crude.

It will also take a chunk out of tax revenues and likely require yet more fiscal stimulus, lifting the government's already massive borrowing needs.

"We currently forecast a budget deficit for 2020/2021 of A$240 billion compared to the government's estimate of A$185 billion," said Westpac chief economist Bill Evans. "We also estimate a deficit in 2021/2022 of a further A$150 billion."

"I have never seen a more uncertain economic outlook than we currently face both domestically and globally," he added. "Risks remain to the downside with the failure to contain the virus more than offsetting any possible fiscal policy response."

The same goes for the State of Victoria, prompting S&P Global Ratings to put its 'AAA' long-term rating on negative credit watch with a chance of a downgrade in the next few months.

The Reserve Bank of Australia (RBA) will release updated forecasts for growth and inflation on Friday, though they may already have been overtaken by the latest lockdown.

This may be one reason the central bank has resumed its purchases of government debt, offering to buy another A$500 million of bonds on Thursday.

That has helped keep three-year yields down at 0.269%, compared with a high of 0.299% last week. Yields on 10-year debt had edged up to 0.856%, keeping them 32 basis points above U.S. Treasury notes.

(Editing by Jacqueline Wong)

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