The NZDUSD opens at 0.6941 (mid-rate) this morning.
Geopolitical risks eased yesterday with markets responding positively to the news that the US and China have agreed to drop tariff threats and work together on a wider agreement.
Global equity markets along with risk linked currencies have moved to the upside with the AUD the strongest performing of the G10 currencies.
The NZD failed to keep track with the AUD with yesterday’s disappointing retail sales report weighing on the dollar. Q1 retail sales increased just 0.1% well below the expected 1.0% growth, with Q4’s previously reported 1.7% increase downwardly revised to 1.4%.
The British Pound is under pressure as investors trim their long GBP positions ahead of Wednesday night’s inflation report. Traders remain wary after last month’s report showed UK inflation fell at a much faster rate than expected, from 2.7% to 2.5%, prompting the BOE to cut its inflation forecasts.
Global equity are broadly higher- Dow +1.17%, S&P 500 +0.77%, FTSE +1.03%, DAX Closed%, CAC +0.41%, Nikkei +0.31%, Shanghai +0.64%.
Gold prices are unchanged trading at $1,292 an ounce. WTI Crude Oil prices have pushed higher, up 1.3% trading at $71.37 a barrel.
Current indicative rates:
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