Daleport Capital Limited

Jonathan Kozakiewicz from www.proforexsignals.co.uk gives comment on market news.

Press Release   •   Dec 23, 2013 12:18 GMT

There were a few big headlines that came out of Australia and New Zealand yesterday and early this morning, mainly the Reserve Bank of New Zealand (RBNZ) announcing their Interest Rate Decision and Australia's employment data. RBNZ left the rate unchanged at 2.5%, as was expected. Claiming growth to be moderate, Governor Wheeler commented that export prices for the country's main commodities have continued to increase and GDP is expected to grow 3% in the year to the September quarter.Wheeler went on to state, “Our forecasts suggest that the cash rate will need to increase by around 2.25% over the next two-and-a-quarter years”. This reiterates what we've been hearing for months and caused the kiwi to sky-rocket as investors reacted to the possibility of an increase to 4.75% by the end of 2015. The NZD$ captured a 0.4 cent again against the USD, a 0.7 cent gain against the Yen, a 1 cent gain against the AUD$ and a 0.8 cent gain against the Euro. GBP/NZD declined by over a cent to 1.97777.The next big news came from the Australian Bureau of Statistics where employment data came in roughly as expected and also showed a stronger than expected increase in new jobs (21,000). A 5.8% unemployment rate and 64.8% participation rate helped the AUD$ show initial mild gains during the Asian session, with AUD/USD up 0.07% after the data release, trading at 0.9056. GBP/AUD appeared to be influenced by investor fears over General Motors' decision to cease car production in Australia from 2017 onwards, causing more than 2,900 job losses. Whilst the Reserve Bank of Australia (RBA) have been trying to stimulate weaker parts of the economy and consumer sentiment by cutting interest rates several times since late 2011, the economy appears to be characterised by low, mining-dependent growth.