AUD/USD, US Dollar, NOK Analysis & News
- RBA Announce Record Low Rates and QE
- Norges Bank Raises Concerns Over Currency Intervention
- Initial Jobless to Start Showing Coronavirus Impact
AUD: As widely expected, the RBA cut interest rates to a record low 0.25%, while also launching its first QE program via yield curve control with the 3-year yield set at 0.25% in order to combat against coronavirus impact. The Australian Dollar has seen a modest recovery from its 18-year low throughout the session and given an added boost after the Fed announced more USD swap lines (to ease concerns over dollar shortage).
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NOK: With the NOK hitting a record lower against the US Dollar and the Euro, the Norges Bank signalled its intention to intervene after stating that they stood ready to defend the Norwegian Krone. Subsequently, NOK came off its intra-day lows, as such, this provides a reminder that with the US Dollar continuing to surge, more and more central banks will likely become increasingly active to prevent excessive weakness in their local currencies. Of note, the SNB highlighted that they are intervening more strongly in FX markets.
US Initial Jobless to Start Showing Coronavirus Impact
Economic Calendar (19/03/20)
WHAT’S DRIVING MARKETS TODAY
- “EUR/USD Plunges to Multi-Year Lows, German GDP Predicted to Slump in Q2” by Nick Cawley, Market Analyst
- “Coronavirus QE: FTSE 100, FTSE MIB Relief Rally to be Faded” by Justin McQueen, Market Analyst
- “Canadian Dollar Price Outlook – USD/CAD Rally Nearing End or Just Getting Started?” by Paul Robinson, Market Analyst
— Written by Justin McQueen, Market Analyst
Follow Justin on Twitter @JMcQueenFX
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