By Dan Bell
The NZDUSD opens at 0.6949 (mid-rate) this morning.
Global trade war concerns resurfaced on Friday after President Trump announced plans to impose a 25% social trade tariff on $50b worth of Chinese products that contain “industrially significant technologies.” The Chinese were quick to react, ignoring Trump’s threats of further tariffs should China retaliate and announced that they would impose 25% tariffs on $50b of imported US goods.
Global equities, commodities, and by association commodity linked currencies are all sharply lower.
US economic indicators were mixed with consumer confidence and New York manufacturing activity both exceeding their forecasts while industrial production unexpectedly declined during the month of May.
The EUR pushed higher late on Friday boosted by rising consumer prices. Data from Eurostat showed that binary options bonus no deposit inflation rose to 1.9% in May following on from an upwardly revised 1.3% increase in April. Core inflation which excludes the cost of energy, food, alcohol and tobacco, also increased in May, to 1.1% from revised 0.8% in April.
The week ahead will be dominated by Central Bank speak with heads of the ECB, Federal Reserve, BOJ, copy a professional trader platform and the RBA all due to speak at various times over the course of this week. As far as domestic drivers Thursday’s Q1 GDP will be the highlight for the NZD this week.
Global equity markets finished the week lower on Friday, – Dow -0.34%, S&P 500 -0.10%, FTSE -1.70%, DAX -0.74%, CAC -0.48%, Nikkei +0.50%, Shanghai -0.73%.
Gold prices fell sharply on Friday down 1.8%, closing out the week at $1,279 an ounce. WTI Crude Oil prices plunged lower on Friday, down 2.9% to close out the week at $65.06 a barrel.
Current indicative rates:
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Dan Bell is the senior currency strategist at xe money transfer in Auckland. You can contact him here »