The NZDUSD opens at 0.7232 (mid-rate) this morning.
Global equities were the big loser on Friday with major averages accelerating to the downside after President Trump confirmed tariffs on up to $60bn in annual Chinese imports. Trump went on to say that “China must pay for decades of unfairly acquiring American intellectual property.”
China in retaliation has said it will impose tariffs on up to $3 billion worth of U.S. goods sparking a major sell-off in equities with the Dow down 1.77% and the S&P 500 down 2.1% on the day, and down 5.7% and 6.5% respectively on the week.
With investors focusing on trade war concerns Friday’s US economic data releases had little effect on the dollar. For the record new home sales fell by 0.6% to an annual rate of 618k in February from an upwardly revised 622k in January. Economists had expected new home sales in February to increase to 623K from the previously reported 593k in January. US durable goods orders spiked by 3.1% in February reversing a 2.55 fall in January.
The week ahead will continue to be dominated by trade talks with the pick of the economic data releases being Thursday night’s final US Q4 GDP result which is expected to rise to 2.7% up from the previously reported 2.5%.
Global equity markets fell sharply on Friday, - Dow -1.77%, S&P 500 -2.09%, FTSE -0.44%, DAX -1.77%, CAC -1.39%, Nikkei -4.51%, Shanghai -3.39%.
Gold prices pushed higher on Friday as safe haven demand increased, closing out the week at $1,346 an ounce, WTI Crude Oil prices steadied on Friday, closing out the week at $65.71 a barrel.
Current indicative rates:
| NZDUSD | 0.7232 | 0.1% |
| NZDEUR | 0.5858 | -0.1% |
| NZDGBP | 0.5116 | -0.1% |
| NZDJPY | 75.68 | -0.9% |
| NZDAUD | 0.9385 | 0.2% |
| NZDCAD | 0.9318 | 0.0% |
| GBPNZD | 1.9547 | 0.1% |
Upcoming Data releases (NZST):
- 10:45 - Trade Balance
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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