By Dan Bell
The NZDUSD opens at 0.6927 (mid-rate) this morning.
The NZD has added to yesterday’s gains and has outperformed most of its major rivals as trade tensions ease.
As expected global equity markets are all In positive territory after Trump and Xi agreed a 90-day truce while they work towards a new trade agreement. In return for the US delaying an increase in tariffs on $200 billion of Chinese goods China has agreed to purchase a “not yet agreed upon, but very substantial, amount” of agricultural, energy, industrial, and other product from the US.
The British pound is the worst performing of the G20 currencies with better-than-expected manufacturing PMI failing to outweigh the Brexit headlines. Earlier this morning data from Markit showed that UK manufacturing sector expanded at the fastest pace in two months in November with the index increasing to 53.1 following on from October’s 27-month low of 51.1. The result was ahead of economist’s estimates of a 51.7 reading.
Economic data out of the US this morning offset each other with construction spending unexpectedly declining during the month of October, while manufacturing activity during the month of November surprised economists, who had expected the index to edge lower, by increasing to 59.3 following a 57.7 reading in October.
This afternoon the RBA are expected to keep interest rate unchanged with investors likely to wait for Australia’s quarterly GDP report before positioning their books. The GDP data report will be released tomorrow afternoon.
Global equity markets are broadly higher, – Dow +1.0%, S&P 500 +0.75%, FTSE +1.18%, DAX +1.85%, CAC +1.00%, Nikkei +1.00%, Shanghai +2.57%.
Gold prices are up 0.1% trading at $1,233 an ounce. WTI Crude Oil prices are sharply higher, currently up 3.1% trading at $52.68 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 »