The NZDUSD opens at 0.7214 (mid-rate) this morning.
The Japanese Yen along with the Swiss Franc are both trading higher as investors flock to safe-havens following the news that China is imposing tariffs on 128 imported goods originating in the U.S.
In retaliation to the US’s decision to impose tariffs on steel and aluminium imports from China, China yesterday announced that a total of 128 imported US products will be subject to tariffs ranging from 15%-20% fuelling fears that the world is on the brink of a full blown trade war.
US equity markets have fallen sharply following the news with both the Dow and the S&P 500 down circa 3%.
This morning’s US economic data releases were underwhelming with both the Manufacturing PMI and Construction Spending falling short of economists’ estimates. The ISM purchasing managers index fell to 59.3 in March down from 60.8 in February and below the forecast 60.0 reading while U.S. construction spending in the month of February edged up by 0.1% well below the forecast 0.6% increase.
The highlight for the NZD today will be this morning’s business confidence data release while this afternoon the NZDAUD cross rate will be influenced by this months’ RBA rate announcement. The RBA are expected to leave their OCR unchanged with the tone of the accompanying statement dictating direction for the AUD.
US equity markets are down sharply, - Dow -2.96%%, S&P 500 -2.98%, Nikkei -0.31%, Shanghai -0.18%.
Gold prices are pushing higher as safe-haven demand increases, currently up 1.4% at $1,343 an ounce, WTI Crude Oil prices are sharply lower, currently down 2.2% at $62.99 a barrel.
Current indicative rates:
| NZDUSD | 0.7214 | 0.1% |
| NZDEUR | 0.5862 | 0.2% |
| NZDGBP | 0.5136 | 0.4% |
| NZDJPY | 76.41 | -0.7% |
| NZDAUD | 0.9425 | 0.3% |
| NZDCAD | 0.9331 | 0.3% |
| GBPNZD | 1.9471 | -0.4% |
Upcoming Data releases (NZST):
- 10:00 - NZIER Business Confidence
- 16:30 - RBA Rate Statement
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Dan Bell is the senior currency strategist at xe money transfer in Auckland. You can contact him here »
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