Australia, NZ Dollars Steady after setback, Geopolitics A Drag | Einsmark news

By Wayne Cole Sydney, June 20 (Reuters) -The Australian and New Zealand dollars found a little foot on Friday, as the Israeli -iran constant continued, but did not rise to us, with a welcome postponement for riskates. Markets were left in geopolitical limbo after President Donald Trump made a decision to stop Iran for two weeks, while the two parties traded more missile attacks. Still, the lack of an immediate US attack was enough for the Aussie to increase 0.1% to $ 0.6487, after diving 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 hung to $ 0.6000 on Thursday, after slipping to $ 0.5959 on Thursday as a fraction of the support that provoked the sale of stop-loss. It was off $ 0.6088 early in the week from the top of the week and sailed a refuge to $ 0.5926. In July, a mixed Australian job report had little impact on the market expectations for a quarterly point cut from the Reserve Bank of Australia (RBA), which is priced at a 75% chance. “We remain comfortable with our view that the RBA’s next rate cut is likely to occur in August,” Westpac analysts said in a note. “The RBA has made it clear that they want to adapt the policy in a cautious and predictable way, which justifies a quarterly lecture on inflation and time to judge the world conditions.” Inflation figures for the second quarter are only due to the end of July. Across the Tasman, economic growth dropped a little faster than expected in the first quarter, but business investment was disappointingly weak. Markets still see a rare chance that the Reserve Bank of New Zealand reduces its 3.25% rate in July, although the likelihood of an August move is above 60%. “We now expect the RBNZ to interrupt the relief cycle on July’s meeting instead of cutting,” said Andrew Boak, an economist at Goldman Sachs. However, given the large amount of slackness in the labor market, Boak saw more room on the disadvantage of rates and forecast another three quarterly capacity to 2.5%, far below the 3.0% floor of the market. (Reporting by Wayne Cole; Editing by Jamie Freed)