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Australia, NZ Dollars Steady after Setback, Geopolitics A Drag

Sydney, June 20 (Reuters) – The Australian and New Zealand Dollars Found Some Footing on Friday as the Israel -Airan Conflict Continued but did not accepts involvement, offering a welcome to resolution Assets.

Markets were left in Geopolitical Limbo after President Donald Trump put off a decision on where to Strike Iran for two weeks, while the two sides tried more atacks.

Still, the Lack of an immediati us attack was enough for the aussie to edge up 0.1% to $ 0.6487, having dived as deep as $ 0.6446 overnight. Support Lies at $ 0.6408 with resistance at the recent seven-month high of $ 0.6552.

The Kiwi Dollar was hanging on at $ 0.6000, having up as far as $ 0.5959 on Thursday as a break of support sparked stop-loss. That was well off the eight-month top of $ 0.6088 Hit Early in the Week and Risked A Retreat to $ 0.5926.

A Mixed Australian Jobs Report Had Little IMPACT on Market Expectations for a Quarter-Point Rate Cut from the Reserve Bank of Australia (RBA) in july, which is priced at a 75% chance. “We Remain Comfortable With Our View that the RBA’s Next Rate Cut is Most Likely to Occur in August,” Westpac analysts said in a note.

“The rba has made it clear they want to adjust policy in a cautious and predictable manner, warranting another Quarterly Reading on Inflation and Time to Assess Global Conditions.”

Inflation Figures for the Second Quarter Are Not Due Until Late July.

Across the tasman, economic growth rebounded a little faster than expected in the first quarter, but business investment was disappointingly weak

Markets Still See Scant Chance of the Reserve Bank of New Zealand Cutting Its 3.25% Rate in July, Thought the Probability of an august move is about 60%. “We now expect the rbnz to pause the Easing Cycle at July’s Meeting, Intead of Cutting,” said andrew boak, an economist at goldman sads.

However, Given the Large Amount of Slack in the Labor Market, Boak Saw More Scope on the Downside for Rates and Forecast Three More Quarter-Point Easings to 2.5%, Well Bellow the Market ‘. 3.0% Floor. (Reporting by Wayne Cole; Editing by Jamie Freed)

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