By Dan Bell
The NZDUSD opens at 0.6895 (mid-rate) this morning.
Trade war concerns have weighed heavily on risk with equity markets, commodities and commodity linked currencies all firmly in negative territory.
President Donald Trump has continued add petrol to the trade war fire this time tweeting “The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!”
Despite further disappointing economic data this time by way of further weakness in Germany’s business sentiment the EUR along with the JPY have outperformed as safe-haven currencies.
Germany’s business confidence index weakened further during June with the Ifo Institute reporting the index fell from 102 in May to 101.8 in June. Economists had expected the index to edge down to 101.9.
Again there is little in the wat of economic data during our trading session while overnight investors will look to the US consumer confidence report for direction.
Global equity markets have fallen sharply, – Dow -1.98%, S&P 500 -1.99%, FTSE -2.24%, DAX -2.46%, CAC -1.92%, Nikkei -0.79%, Shanghai -1.05%.
Gold prices are little changed trading at $1,267 an ounce WTI Crude Oil prices are down 1% trading at $66.97 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 »