By Dan Bell
The NZDUSD opens at 0.6695 (mid-rate) this morning.
Risk appetite has increased and global equity markets are firmly positive in reaction to the news that the US and Mexico were about to announce a new trade agreement.
This morning President Donald Trump confirmed that the earlier reports that the US and Mexico had agreed a new trade deal were true and that he now intends to negotiate a separate trade agreement with Canada. Mr Trump has indicated that the new trade agreement would replace NAFTA which he has always claimed was not in the best interest of the US. The announcement has pushed both the Nasdaq and the S&P 500 to new record intraday highs, while the Dow is now trading back above 26,000.
Trump has said that he will give Canada “a chance to probably have a separate deal,” but added that if Canada refuse to negotiate “fairly” he will raise tariffs on Canadian auto imports.
The EUR has made headway against its rivals after the Ifo Institute reported Germany’s business confidence hit a six-month high in August. The report showed the sentiment indicator rose more-than-expected to 103.8 in August following on from a 101.7 reading in July. The index had been forecast to inch up to 101.8.
This morning Prime Minister Jacinda Ardern will speak at a business event in Auckland where she will deliver a ‘major speech’ on the country’s economy and relationship with business.
Global equity markets are trading higher, – Dow +1.00%, S&P 500 +0.75%, FTSE +0.19%, DAX +1.16%, CAC +0.86%, Nikkei +0.88%, Shanghai +1.89%.
Gold prices have edged higher, up 0.3% trading at $1,209 an ounce WTI Crude Oil prices are little changed trading at $68.54 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 »